Insights and perspectives
Explore core fixed income insights from our portfolio managers and research analysts.
Chart of the month
The European automotive sector experienced significant challenges in 2024, particularly in the latter half of the year, and ended 2024 as one of the key underperformers within the Euro Investment Grade Corporate Index. A weaker-than-expected recovery in China, combined with a slower transition to electric vehicles (EVs) and intensified competition from Chinese EVs, contributed to the sector's underperformance. In addition, an increasing risk of fines for failing to meet European Union 2025 CO2 targets and proposed tariffs from the incoming Trump administration in the US added further complexity and volatility.
In this environment, the Credit team initially favoured US domestic carmakers and those with production concentrated in North America. Given their outperformance, we are beginning to see more attractive valuations emerging for European auto manufacturers, particularly due to the increased risk of US tariffs on imports from Mexico and Canada, which will impact US automakers disproportionately. We continue to see Asian carmakers as attractive from a credit perspective due to their diversified geographic exposure and robust balance sheets. With investor sentiment at a low and policy uncertainty high, we anticipate increased volatility in the sector during the first half of 2025 and aim to capitalise on evolving valuations through actively managed portfolios that can swiftly adapt to market changes.
Vishal Singhal
Credit Research Analyst
William Klein
Investment Specialist
Portfolio positioning analysis
Find out how we’re positioning our core fixed income portfolios, based on our latest economic and market views.
PM Perspectives: The tides are finally turning for fixed income
Inflation and labour markets have remained stubborn for some time, causing many major central banks to delay the start of their monetary easing cycles. However, there are signs that these key measures are beginning to ease, which paves the way for fixed income markets to deliver attractive risk-adjusted returns. We believe a strategy with an active approach to investing across the global fixed income spectrum is best placed to capitalise on the opportunities that could emerge as the tide turns for the asset class.
Core fixed income funds for diverse needs
Research-driven security selection and disciplined risk management are at the heart of our fixed income portfolio building blocks. Download a chart pack or explore the fund for more information.
For Professional Clients/ Qualified Investors only – not for Retail use or distribution.
This is a marketing communication and as such the views contained herein are not to be taken as advice or a recommendation to buy or sell any investment or interest thereto. Reliance upon information in this material is at the sole discretion of the reader. Any research in this document has been obtained and may have been acted upon by J.P. Morgan Asset Management for its own purpose. The results of such research are being made available as additional information and do not necessarily reflect the views of J.P. Morgan Asset Management.
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 may be subject to change without reference or notification to you.
The value of investments and the income from them may fluctuate in accordance with market conditions and investors may not get back the full amount invested. Past performance and yield are not a reliable indicator of current and future results. There is no guarantee that any forecast made will come to pass. J.P. Morgan Asset Management is the brand name for the asset management business of JPMorgan Chase & Co. and its affiliates worldwide. To the extent permitted by applicable law, we may record telephone calls and monitor electronic communications to comply with our legal and regulatory obligations and internal policies. Personal data will be collected, stored and processed by J.P. Morgan Asset Management in accordance with our EMEA Privacy Policy www.jpmorgan.com/emea-privacy-policy. This communication is issued in Europe (excluding UK) by JPMorgan Asset Management (Europe) S.à r.l., 6 route de Trèves, L-2633 Senningerberg, Grand Duchy of Luxembourg, R.C.S. Luxembourg B27900, corporate capital EUR 10.000.000. This communication is issued in the UK by JPMorgan Asset Management (UK) Limited, which is authorised and regulated by the Financial Conduct Authority. Registered in England No. 01161446. Registered address: 25 Bank Street, Canary Wharf, London E14 5JP.
7e15bcd5-d25d-11ef-b97c-af788ee173ca