Talk Your Book: Balancing Risk and Yield

Sep 2, 2024

Join Priya Misra, a savvy portfolio manager for the JPMorgan Core Plus Bond ETF, as she unpacks the surge in private credit popularity and today's corporate bond spreads. Discover what a soft landing means for interest rates, along with insights into high-quality names in high yield. Misra emphasizes the balance of risk and yield in portfolio management, exploring the active strategies needed in the current climate of fluctuating rates. Get ready for a deep dive into navigating the evolving landscape of fixed income investments!

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INSIGHT

Macro in Bonds

The bond market has a stronger macro component than the stock market, making it sensitive to interest rate changes.
This macro focus makes bond markets interesting because different economic scenarios (soft/hard landing) can both be beneficial.

INSIGHT

Positive Real Yields

Bond yields are now above inflation (positive real yields), unlike the past when they were negative.
This means bonds now have a bigger margin of safety compared to before.

INSIGHT

Smart Money?

Fixed income and equity markets interpret the same data differently based on flows.
Macro factors like interest rates and FX play a larger role in fixed income pricing than equities, leading to potential asymmetries.

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On today's show, we are joined by Priya Misra, Portfolio Manager for the JPMorgan Core Plus Bond ETF to discuss why private credit has gotten so popular, where corporate bond spreads are today, high quality companies within the high yield category, what a soft landing means for interest rates, and much more!

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