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Fixed Income Triangle

2019Q3 fixed income market outlook

J.P. MORGAN ASSET MANAGEMENT'S
FIXED INCOME TRIANGLE

While investors have historically been known to diversify their equity risk, given the
current low interest rate environment, it's just as important for investors to be
diversifying fixed income investments. It's important investors:

  • Think strategically about blending core bond holdings with those from the
    complements and extended sectors
  • Consider a client's goals, risk tolerance and time horizons
  • Adjust allocations to reflect your market and interest rate outlook

JPM Fixed Income Triangle

THE BUILDING BLOCKS OF THE FIXED INCOME TRIANGLE

Every stage and component of the triangle can contribute to your portfolio's risk adjusted returns, namely:

  • Reduce volatility
  • Increase return on volatility
  • Enhance yield
                                                                                        

J.P. MORGAN ASSET MANAGEMENT'S FIXED INCOME FUNDS:

JPM Global bond fund  JPM Global strategic bond fund  JPM Global Bond Opportunities Fund 

 
The performance of individual fixed income sectors can be volatile as different bond market sectors, structures and maturities respond differently to changing interest rates. This is why diversification can help lower portfolio volatility and reduce the impact of rising rates in addition to other risks. When considering the right mix of investments, it is important to think strategically about blending your core holdings with those from the complements and extended sectors. The Fixed Income Triangle is an effective tool that provides a framework towards better results and helping investors achieve their goals.




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