It’s time for investors to start rebuilding their bond allocations, according to JPMorgan Asset Management’s Bob Michele. While the U.S.-Iran war and the surge in oil prices has investors concerned, the volatility shouldn’t keep them from building up their fixed-income exposure at a time when yields remain attractive, he said. In fact, the bond market has actually held up reasonably well this past week, said Michele, the firm’s chief investment officer and head of global fixed income. The 10-year Treasury yield has moved higher, but it has remained in the range it’s been in since September, between 3.9% and 4.3%, he noted. Bond yields move inversely to prices. Credit has also held in fairly well, with much of the concern focusing on private credit markets, he noted. As a result, he’s sticking with his call to move money into fixed income, especially for those who have been under-allocated for the past few years.
