Bonds
Banks See Higher-Rated Bonds Beating Junk Debt for First Time Since 2020
- JPMorgan expects investment grade to deliver 12% total return
- Morgan Stanley calls for 9% this year compared to 7% for junk
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JPMorgan Chase & Co. and Morgan Stanley expect US investment-grade bond returns to beat speculative-grade debt in 2024, for the first time in four years, as investors position for interest-rate cuts and slower economic growth.
Bank of America Corp. recommends higher-rated bonds over junk debt as it sees rates, earnings and issuance challenging credit this year.