Higher Rates Mean ‘Bonds Are Back,’ JPMorgan’s Michele Says
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Investors are finding value in bonds for the first time in a decade as higher interest rates make fixed-income attractive, according to JPMorgan Chase & Co.’s Bob Michele.
Yields on the benchmark Bloomberg bond aggregate index have soared to 4.7% from 1.75% at the end of 2021 as the Federal Reserve embarked on an aggressive rate-hiking course to combat inflation. With the Fed showing signs of slowing its rate increases, investors can expect more market stability, Michele, chief investment officer for fixed-income at JPMorgan’s $2.5 trillion asset manager, said Friday on Bloomberg Television’s “Wall Street Week.”