Italy, Spain Are JPMorgan's Answer to Yields in Europe
- Head of fixed income in asset-management unit likes periphery
- Capital requirements make banks `bullet-proof' borrowers
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J.P. Morgan Asset Management says investors turned off by the euro area’s $1.8 trillion of negative-yielding debt would be wise to not give up on the region’s bonds.
With the European Central Bank committed to its accommodative monetary policy while also tightening capital requirements for financial institutions, investors should consider peripheral sovereign borrowers and the region’s banks, said Bob Michele, who heads global fixed income at J.P. Morgan Asset Management, which overseas $1.7 trillion.