High-grade corporate bonds (LQD) have a fan in JPMorgan, which looks for further tightening in...

|By:, SA News Editor

High-grade corporate bonds (LQD) have a fan in JPMorgan, which looks for further tightening in spreads given increasing demand from pension and insurance buyers as they turn away from high yield (HYG, JNK) and emerging-market debt (EMB). Another plus: Investment-grade corporate paper tends to have lower duration than, say, long-term Treasurys (TLT), of which the team is also bearish. JPMorgan's a big bank, and someone else there has a different opinion of corporates.