JPMorgan: Bonds are facing a 'messy' environment

On February 15, Oksana Aronov, alternative fixed-income strategist at JPMorgan Asset Management, said on Monday that bonds are "hard to see a good end" amid rising interest rates. "We're a bit of a mess," Aronov said. "We're in the midst of the Fed's last policy blunder and worrying about their next policy blunder" "Right now, caution is king and defense is king," she said. Liquidity has become "exceptionally important" as uncertainty surrounding rate hikes hits asset classes across the board. She added: "Going into the year, half of our portfolio was purely liquid, and we continued to favour premium structures with high liquidity". "There are times when you can't go full and you need to defend," Aronov said.