Credit's inflection point: What now?

Resisting the yield junkies’ siren

William Eigen, chief investment officer and head of the absolute return and opportunistic fixed income group at J.P. Morgan Asset Management, says investors must ensure they are getting paid for any risks they are taking.

Fixed income markets pose a conundrum, and many investors are perplexed by the current level of investor complacency. The tendency is to venture deeper into far flung corners of the market in search of the ever elusive yield. Yet that behaviour clearly ends badly, if you believe history is any guide.  Plenty of times in the past, investors have stayed complacent for too long, only to find themselves past an inflection point where markets were fast and furious in sorting out the winners from the losers. It feels like we are getting close to that inflection point again. Investors need t...