So one caveat at the beginning of this article—we got these bond trading ideas from a “sponsored content” article from JP Morgan. Nonetheless, such pieces often have great insights. JP Morgan offers five good bond trading ideas for the current environment. Among these ideas, JP Morgan likes US high yield bonds, which are seeing very low defaults rates and lower leverage. Secondly, US investment grade credit, where yields are often above 3%, is looking good on the back of strong financial performance, hungry investors, and moderate issuance. JP Morgan also warns to stay clear of Euro sovereign bonds, which could see heavy losses if the ECB tapers even mildly.
FINSUM: JP Morgan makes some good points in this article and backs them up with data. We think these are definitely good options to investigate.