As a new earnings season begins, investors will be looking closely at company earnings and guidance for a steer on the macro outlook and direction. In this week’s Bond Bulletin, we explore the outlook for investment grade credit markets and why we continue to favour banks in this environment.

What does this mean for fixed income investors?

We remain overweight the banking sector within investment grade credit heading into the fourth quarter, with a preference for subordinated parts of the capital structure, such as AT1 debt. While valuations are mixed, a strong fundamental and technical environment should support the sector going forward, and we anticipate investment grade credit to perform well going forward.

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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