Rising Yields Creates Value: JPMorgan's Berro

• US bond yields have significantly underperformed global peers recently, with some stabilization seen in European core markets.
• Higher yields are primarily driven by strong nominal growth, fueled by fiscal spending, AI capital expenditure, and robust consumer spending.
• Value is being created in fixed income, with specific attraction to agency mortgage-backed securities due to their yields and government backing.

Kelsey Berro and Brij Khurana discuss the drivers of rising global bond yields, noting a shift from inflation concerns to strong nominal growth. While US yields have significantly underperformed, signs of stabilization are emerging in Europe. Both analysts identify areas of value within fixed income, despite ongoing fiscal supply and high oil prices.