Higher Rates Mean ‘Bonds Are Back:’ JPMorgan’s Bob Michele

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.”

“Every wealth-management platform in JPMorgan, every institutional client — they’re coming to us, they’re putting money in bonds,” Michele told host David Westin. “Bonds are back.”

Stocks barely budged during the week, with the S&P 500 losing less than 1%, down 17% so far in 2022.

Leave a Reply