As euro-based investors look to access opportunities in corporate bond markets, we explore three reasons to consider a global corporate strategy (EUR hedged), and highlight the global investment grade (IG) credit capabilities offered by J.P. Morgan Asset Management.

1. The global corporate market provides an attractive yield

Opportunity: As central banks navigate diverse growth paths, disinflation trends and trade policy risks this year, we anticipate divergence in valuations across curves and regions. The global corporate index offers attractive yields compared to historical levels, providing investors with opportunities to access favourable valuations. The current yield on the global corporate index stands at 3.03%, reflecting a consistent yield pickup over the last decade. While spreads are tight compared to historical averages, the outlook remains promising for investors seeking yield enhancement.

2. The global corporate market offers broad diversification and a large opportunity set

Diversification: Accessing the global corporate universe provides significant diversification benefits for investors. The global corporate index encompasses over 17,000 securities from more than 2,000 companies, offering a broader sector spread compared to regional strategies. This extensive range allows active investors to express their views across various sectors and ratings, enhancing portfolio diversification and reducing concentration risks.

3. The global corporate market offers deep liquidity and opportunities across a broad range of maturities

Liquidity: The global corporate bond market is one of the deepest and most liquid markets worldwide, with substantial issuance and trading volumes. Year-to-date, we’ve seen over USD 800 billion of gross IG corporate issuance. In 2024, average US IG traded volumes exceeded 40 billion daily. Allocating to a global corporate bond fund enables investors to seeks the best opportunities for excess returns across a broad, deep market.

Duration: The global corporate market typically offers access to longer-dated bonds, with an index duration of 5.9 years, providing investors with opportunities to extend their portfolio duration profile as market conditions evolve. This diverse maturity profile allows investors to position their portfolios strategically to meet global pension and insurance client demand, offering more flexibility than regional strategies.

Why invest in global corporate bonds with J.P. Morgan Asset Management?

Philosophy

• Research driven, team-based approach to a disciplined and repeatable process

People

• Global Credit Portfolio Management team of 12 portfolio managers and 2 portfolio analysts, with an average of 16 years’ experience with key partners:
• 20 dedicated IG research analysts covering approximately 90%¹ of the global corporate universe with an average of 21 years’ industry experience. 
• 8 dedicated IG traders with sector specialisation.
• 8 dedicated IG Investment Specialists in New York, London and Mumbai

Process

• Research driven investment process with fundamental, quantitative, and technical inputs
• Combination of top down and bottom-up inputs via macro credit strategy, sector credit strategy, and security credit strategy
• Every portfolio position has a score based on a combination of fundamental and relative value inputs, which act as the basis of portfolio construction
• Drive credit strategy for the global fixed income platform based on deep credit research and partnership with research analysts
• Proprietary environmental, social and governance (ESG) views help drive sector and security positioning*
• Risk controls and management are embedded in every stage of our investment process

Performance

• Flagship credit strategies have consistently outperformed their benchmark (gross of fees) over rolling 3-year periods for the past 15 years²
• Consistency of returns underpins repeatability of the investment process