JPMorgan Flips to Favor EM Assets as Recession Risk Slides
- Russia, Indonesian government bonds among top picks: Michele
- Odds of a global recession drop to 25% from 40% previously
This article is for subscribers only.
JPMorgan Asset Management has turned bullish on emerging-market bonds and currencies as the threat of a global recession recedes.
The $1.7 trillion investment giant slashed its forecast for the probability of a recession to 25% from 40%, citing thawing U.S.-China trade tensions and this year’s deluge of easy monetary policy across the globe, chief investment officer Bob Michele wrote in a quarterly outlook note. This has made emerging market debt its top choice, with government bonds from Russia, Mexico, Indonesia and Peru among its preferences.