The Weekly Brief (14 March 2016) - J.P. Morgan Asset Management

The Weekly Brief (14 March 2016)

Contributor Global Markets Insights Strategy Team

The European Central Bank (ECB) unveiled several significant measures to support the eurozone economy and push up inflation.

Attacking on all fronts, Draghi signalled the central bank's determination and markets were positively surprised by the breadth of what was announced. One of the ECB’s new measures was the addition of euro-denominated non-bank investment grade (IG) corporate bonds to their QE shopping list. The IG corporate bond market is much smaller compared to the sovereign bond market so the purchases should help to reduce financing costs for eurozone companies and be supportive for European IG credit. High yield (HY) credit should also benefit as investors move down the risk spectrum into the even smaller HY markets in a search for yield as a result of falling IG spreads.

ECB broadens purchases
Eurozone fixed income market amounts outstanding

Source: Bloomberg, J.P. Morgan Asset Management; data as of 11 March 2016.

Related products

JPM Global Macro Opportunities Fund
Leveraging global macro themes to generate performance. This fund targets positive returns in various market conditions by capitalising on the opportunities created by economic trends within a risk-controlled framework.
JPM Multi-Asset Income Fund
Using a flexible approach that seeks only the best income opportunities from around the globe, our Multi-Asset Income Fund aims to provide investors with a consistent and attractive income stream and the opportunity for capital growth.
JPMorgan Global Growth & Income plc

The JPMorgan Global Growth & Income plc seeks out strong long-term returns by investing in a best ideas, high-conviction portfolio from across the world's stock market. The Company also delivers predictable quarterly income distributions which are set at the beginning of its financial year.

Important information

Please be aware that this material is for information purposes only. Any forecasts, figures, opinions, statements of financial market trends or investment techniques and strategies expressed are, unless otherwise stated, J.P. Morgan Asset Management’s own at the date of this document. They are considered to be reliable at the time of writing, may not necessarily be all-inclusive and are not guaranteed as to accuracy. They may be subject to change without reference or notification to you. JPMorgan Asset Management Marketing Limited accepts no legal responsibility or liability for any matter or opinion expressed in this material.

The value of investments and the income from them can fall as well as rise and investors may not get back the full amount invested. Past performance is not a guide to the future.

The Weekly Brief (14 March 2016)