JPM's Michele says credit spreads could halve

J.P. Morgan global CIO of fixed income Bob Michele believes the current environment for bond investors is the best in his 30-year career, as borrowers display an unprecedented commitment to repay debt.

Michele, who oversees $109bn in fixed income and currency assets, says all the recent government and corporate actions have been designed to facilitate the payback of debt. "Over the course of 30 years it has always been a ‘cat and mouse' game about lending client money to borrowers and trying to gauge how aggressive they are going to be with this money," he says. "Are companies refinancing higher coupon debt, making an acquisition or spending on cap-ex? Is a government about to restructure or default? For the first time in 30 years, everyone is committed to paying you back. Everyone ...