In this paper, we assess the potential risks associated with such a strategy by stressing capital requirements using spread-implied ratings.
A summary of the factors driving global markets over the last month.
Learn more about J.P. Morgan’s views on fixed income, the economy and markets.
We cut the chances of recession to 25% after a thaw in the trade war and a year of rate cuts; our forecast is for sub trend growth. Favored sectors include emerging market local currency debt and higher rated short-duration securitized credit.
Reaching for yield, which we define as buying bonds with wider spreads after controlling for sector and rating impacts, is a topic that frequently arises in the life insurance industry.
David Kelly, the Fed, interest rates