How investment grade corporate bonds can cushion the blow of rising interest rates

JPMAM's Andreas Michalitsianos (pictured), manager of the JPM Sterling Corporate Bond fund, discusses how investment grade corporate bonds can act as a buffer in a rising interest rate environment.

The search for income will continue to be an enduring prerequisite for many investors in 2017 and beyond and fixed income, a core component of many portfolios, will continue to be sought out for its steadfast credentials in helping to meet this need. Although a rising interest rate environment does not bode particularly well for fixed income more broadly, investors may want to consider the investment grade corporate sector which can offer a degree of spread cushion, unlike government bonds. The incredible move in government interest rates this year was the catalyst for one of the larg...