Higher rates and rising inflation have created a particularly challenging environment for bonds this year, with the U.S. Aggregate Bond Index down a whopping 13% year-to-date. However, the selloff has also brought valuations down to their most attractive levels in years, and the backup in yields means bonds can once again provide investors with a reliable source of income and diversification. While economic uncertainties remain about the timing of a Fed pivot and the potential for U.S. recession, the case for bonds is as strong as it’s been in over a decade.

To discuss the outlook for fixed-income markets and how investors can take advantage of these opportunities, Dr. David Kelly is joined by Bob Michele, CIO, and Head of the Global Fixed Income, Currency & Commodities group, at JP Morgan Asset Management.