Corporate bonds deserve their credit

Credit spreads have seen further tightening in the first few months of 2024 and appetite among investors for corporate bonds remains robust. We explain why we continue to believe that it makes sense to own credit risk.

What does this mean for fixed income investors?

While the largest leg of the spread tightening may be behind us, it doesn’t mean portfolios can’t earn attractive carry. Corporate bond spreads need a catalyst to sell off and are currently supported by both a strong fundamental and technical backdrop, which suggests that a potential bout of future volatility will be quickly bought by investors looking for a bargain.

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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