Skip to content

Dump Treasuries, Buy Credit for Yield, JPMorgan’s Michele Says

  • Investment grade and junk bonds ‘on sale’ in Europe, U.S.
  • Profitability makes corporates a better bet than governments

Bob Michele, a bond market veteran for more than four decades, is buying corporate debt and telling investors to get in on the bargain by selling government bonds to finance credit purchases.

“You sell government bonds and you buy credit,” the global head of fixed income at JPMorgan Asset Management said in an interview on Bloomberg TV’s Surveillance on Wednesday. “This is an opportunity to get rid of any remaining government bonds you have, and then go back into the credit markets, go back into investment grade and high yield. You can do it in U.S. and Europe. Those are the things you are buying on sale.”