Overall, the global economy is bottoming out and recession risk could wane with a thaw in US-China trade tensions, alongside rounds of central bank rate cuts. While our GFICC team seeks to take measured risks in select fixed income sectors, we remain aware that it is late cycle and valuations are higher. Our GFICC team’s high-conviction bond ideas still generally favour moving up in quality to help build resilience in a portfolio.
Access Portfolio Insights Publication: Our latest global fixed income views
1. Source: J.P. Morgan Asset Management's GFICC Investment Quarterly (IQ). As of 11.12.2019. Opinions Estimates and forecasts may or may not come to pass. Provided for information only. These represent GFICC team’s views under normal market conditions subject to change from time to time.
2. Source: J.P. Morgan Asset Management's GFICC Investment Quarterly (IQ). As of 11.12.2019. Opinions, estimates, forecasts, projections and statements of financial market trends that are based on current market conditions constitute our judgment and are subject to change without notice. There can be no guarantee they will be met. Above-trend: Global gross domestic product (GDP) growth >3.5%, inflation >2%; Sub-trend: Global GDP growth 2-3.5%, inflation 0-2%; Recession: Global GDP growth <2%, inflation <0%; Crisis: A disorderly movement in markets causes systemic impact and tail risk. Provided for information only and not to be construed as investment recommendation or advice.
3. Source: J.P. Morgan Asset Management, J.P. Morgan, Bloomberg, Markit. As of November 2019.
4. For illustrative purposes only based on current market conditions, subject to change from time to time. Not all investments are suitable for all investors. Exact allocation of portfolio depends on each individual’s circumstance and market conditions.
5. Securitisation is the process in which certain type of assets, such as mortgages or other types of loans, are pooled so that they can be repackaged into interest-bearing securities. Examples of securitised debt include mortgage-backed securities (MBS) which are debt securities backed by mortgage-related financial assets. These assets include residential and commercial mortgage loans.
6. Source: J.P. Morgan (Morgan Markets); As at 13.12.2019. CMBS: commercial MBS. Indices used include Bloomberg Barclays US MBS Index (Agency MBS), Bloomberg Barclays Non-Agency US Aggregate CMBS Erisa Eligible Total Return Index (CMBS) and Bloomberg Barclays US Aggregate Credit – Corporate Investment Grade Index (US Corporate IG).
7. Yield is not guaranteed. Positive yield does not imply positive return. Past performance is not a reliable indicator of current and future results.
This content represents our GFICC team’s current view and overall strategy provided for information only based on current market conditions not taking into consideration any specific investor’s investment objective and risk appetite. Not to be construed as investment recommendation or advice.
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