J.P. Morgan Asset Management is making a bullish call on high-quality fixed income, with portfolio manager Priya Misra calling it a once in a generation opportunity for investors. Misra told CNBC's "ETF Edge" that investors can take credit risk in the highest quality companies and still get a 6.5% yield without going down in credit quality, a strategy she said suits those worried about too much exposure to artificial intelligence stocks. Misra co-manages the JPMorgan Core Plus Bond Fund ETF, which holds almost $16 billion in assets under management, with just over three-quarters of its holdings in BBB-rated debt and above as of Aug. 31. She said the firm has been increasing some double-B and single-B exposure amid widening high yield spreads, likes some investment grade, and has started in the last few days to increase duration, thinking the rate move may be nearing its end. The JPMorgan Core Plus Bond Fund ETF is down more than 5% so far this year as of Friday's close, according to FactSet. In the same interview, BondBloxx co-founder Joanna Gallegos advised investors to take advantage of historically attractive yields across debt markets, saying corporate debt can offset portfolio volatility because base rates are high and stable and corporate fundamentals remain strong.
JPMorgan Chase & CoJ.P. Morgan Asset Management's portfolio manager calls high-quality fixed income a once-in-a-generation opportunity and is adding duration and high-yield exposure in its bond fund.
