Heading into the holiday season, we assess the recent strength across fixed income markets and examine whether the spread discount in European high yield (HY) presents investors with a compelling opportunity through the end of the year.

What does this mean for fixed income investors?

Risk assets have benefited from the recent strong rally and market pricing for a soft landing. While outright spread valuations for credit markets are less compelling today, we are mindful of the credit quality, relative attractiveness and supportive technicals for European high yield and look to selectively add to positioning, as liquidity permits, into year-end. 

About the Bond Bulletin

Each week J.P. Morgan Asset Management's Global Fixed Income, Currency and Commodities group reviews key issues for bond investors through the lens of its common Fundamental, Quantitative Valuation and Technical (FQT) research framework.

Our common research language based on Fundamental, Quantitative Valuation and Technical analysis provides a framework for comparing research across fixed income sectors and allows for the global integration of investment ideas.

 

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