JP Morgan AM CIO bullish on mortgage-backed securities as fixed income surges

Iain Stealey

The “huge amount of tightening” from central banks has created a “fantastic environment” for fixed income, according to Iain Stealey, international CIO of global fixed income at JP Morgan Asset Management, who spoke at Morningstar's Investment Conference today (4 July).

Discussing different opportunities within fixed income at the conference, Stealey said that at JP Morgan AM's recent quarterly strategy meeting, the "unanimous top idea" was agency mortgage-backed securities in the US. He said the asset came with "pretty much a government guarantee", which made him think of them as "cheap US treasuries that give you almost 150 basis points additional yield". "The pickup in yield you get for owning these are the widest spreads since the financial crisis," he noted. Deep Dive: Governments' 'lack of financial discipline' could upset bonds' positive ...