JIGB News and Press, JPMorgan Corporate Bond Research Enhanced From 01/24/23

Summary Americas equities, ETPs, corporate bonds, and government bonds all outperformed when compared with previous six-month periods. Corporate bonds continued their impressive run throughout the second half of 2022 increasing revenues over each quarter. 2022 was an outstanding yea...

Summary 2022 was the worst year on record for taxable fixed income funds, and longer-dated investment grade corporate debt bore the brunt of it. Outflows and poor performance were caused by a deteriorating economic outlook brought on by persistent inflation and seven interest rate hikes...

Summary Following a protracted period of rate hikes that began in March 2022, both bond yields and yield spreads are at multi-year highs. Strong fundamentals are due in part to fiscal prudence necessitated by the COVID-19 pandemic. The European Central Bank has concluded its myriad ...

Summary The growth of the Industrial BBB cohort has been led by consumer non-cyclicals. For those BBB companies that find their credit metrics deteriorating, we still think that the bias on the part of corporate managers will be to defend credit profiles as needed. We still expect B...

Summary Markets may be underestimating the stickiness of inflation and central banks’ determination to beat it - and what that means for growth and corporate earnings potential. We favor fixed income and credit over equities, and investment grade over high yield. Should infla...

Summary On a coincident basis, driven by a historically tight labour market and robust industrial production growth, the US economy remains deceptively strong despite negative real incomes and tight financial conditions. However, the leading indicators of the business cycle continue to ...

Summary Top-down and bottom-up forecasts are increasingly diverging, and we think 2023 will be largely about how these divergences resolve themselves. In commodities, after a major spike in 2022, top-down commentators point to slowing growth and inflation, and the historical pattern of ...

Summary Recession foretold in developed markets (DM), a pause in central bank rate hikes and China’s reopening help shape 2023 and reinforce our tactical views. European equities led DM stocks higher. Surprisingly weak U.S. services data spurred bets for Federal Reserve rate cuts...

Summary The stock market needs to fall around 20% to be at parity with lower-rated investment-grade bonds. The US corporate bond market is still more attractive than the US stock market. Be ready for the stock market to fall further after the Fed stops tightening, when the recession...

Summary As central banks battled inflation, interest rates soared and recession fears mounted. Now, central banks must slow their pace of tightening and carefully calibrate a soft landing. We address the challenges of a global slowdown, the benefits of higher yields and strategies f...