JP Morgan weighs up bonds rejig

JP Morgan Fleming is considering a number of changes to its fixed income products that will allow it to continue making money when bond prices begin to fall. Bond investors have done very well in recent years, with yields sinking to lows last seen in the 1960s but many are concerned that prices are at a peak and bond investments will soon start to go backward. JPMF has two ideas to address the problem ' a new fund of floating-rate notes (FRNs) and an increased derivatives capability on all its bond funds that will allow it to gain negative exposure to fixed interest. Portfolio manage...