'Bonds are a tale of two cities' - JPM's Gartside

Nick Gartside, co-manager of the JPM Strategic Bond Fund, has said that a divergence in central bank policies could lead to more diverse returns for fixed income investors in future.

Gartside described the fixed income market as "a tale of two cities" now the European Central Bank has begun to ease policy again, in direct contrast to the tightening paths about to be embarked upon by the UK and US. The asset purchase programme announced by ECB president Mario Draghi alongside its latest rate cut was welcomed by Gartside (pictured), who earmarked ABS as a rare opportunity for bond investors at the moment. "There aren't many outstanding bonds but they are a strong opportunity," he said. Gartside indicated he will continue to keep his exposure to gilts low in favou...