JPMorgan Asset Management Buys U.S. and U.K. Bonds, Believes Inflation Fears Have Oversold Some Debt

JPMorgan Asset Management is buying government bonds in countries such as the United States and the United Kingdom, betting that inflation concerns have led to overselling in some parts of the market. Arjun Vij, a Hong Kong-based fund manager, is digging for value in short-term bonds, which have become one of the most impacted assets after the Iran conflict prompted markets to bet heavily on interest rate hikes. The fund favors bonds with maturities of two to five years, seeing investment opportunities in bonds from the U.S., Australia, and the UK. "We think some value has emerged, and this is the area where we should be adding first," said Vij. He manages the firm's global bond fund, which delivered returns exceeding 14% in the three years through February, according to a fact sheet. (Bloomberg)