In the report, Global Head of Fixed Income Jim Cielinski and Head of Global Short Duration Daniel Siluk believe navigating the change in rate regimes has grown more complicated for the Federal Reserve (Fed) as they must now consider the ramifications of Donald Trump’s proposed economic policies.
There’s a problem brewing in the world of ETFs: We are running out of ticker symbols. Bloomberg recently reported that, with so many new funds hitting the marketplace in recent years, issuers are forced to produce catchy four-letter ticker symbols rather than the more eye-pleasing three-letter abbreviations.
Credit risk fell in reaction to Donald Trump’s US presidential win, even though his presidency may be marred by tariffs and possible trade wars.
Franklin Templeton Fixed Income believes investing in companies promoting gender equality and diversity can lead to inclusivity and strong financial returns. Despite the persistent gender gap, there's an increase in women in leadership roles, positively impacting financial performance, corporate governance and crisis resilience.
Brandywine Global: With the US election imminent, looking past heightened emotions and uncertainty to the potential economic and market impacts can be difficult. But election rhetoric eventually meets reality.
Here we are, another calendar quarter down with one more to go in 2024, and investors have yet to see a “hard landing” emerge.
The most common questions we’ve been asked as the election approaches are generally about the Federal debt and deficits. Many investors worry about a looming “day of reckoning” for US debt. They fear the US’s fiscal imprudence will eventually force a sudden and dramatic repricing of US debt. In this insight, we explore the modern history of US debt to GDP across several Presidential administrations and outline why investors should not be worried about a financial apocalyptic abyss.
Investment grade bonds have long been synonymous with a “core” fixed income allocation, but we believe a flexible strategy also belongs in most bond portfolios, as managers can adjust their exposure based on market conditions.
The US presidential election Nov. 5 is shaping up to be the mother of event risks so you’d think the safest of all havens would be holding up. But it’s not — and that’s only one of the notable anomalies springing up in financial markets. Yields on 10-year US Treasuries have risen nearly 70 basis points since the Federal Reserve's punchy half-point initial rate cut on Sept. 17.
Normalization seems to be in its final stage, with the Fed expected to continue cutting rates.
To those who argue that value investing has gotten too hard in today’s momentum-chasing, passive-driven world, Scott McBride’s results are a bit of a conundrum.
Vanguard Group Inc. sees more opportunities in the lowest rung of investment-grade bonds, even as spreads for triple-B notes reached their tightest since 1998 last week.
Explore how AI fuels nuclear investments, drives energy demand, and attracts tech giants to nuclear power.
The tendency to blindly follow these rules has led investors towards prematurely de-risking and over-estimating the likelihood of recession.
Markets changed character to broad-based optimism relating to the economy. The economic picture began to come into focus with inflation continuing to moderate as the economy maintains steady growth and employment. The result was a stark turnaround for economically integrated or interest rate sensitive assets, which resulted in a great quarter for diversified multi-asset portfolios. New Frontier sets a major milestone in Q4, marking 20 years of investing at the end of October.
Fed easing cycles and lowered target interest rates impact various economic sectors, such as mortgages, consumer credit and cash investments.
Credit indices rallied during the third quarter, despite a variety of economic headwinds, and it appears FOMO (fear of missing out) is fueling the bullish sentiment more than fundamentals.
Quarterly recap: Fed rate cut and Chinese stimulus take the spotlight.
Alpha (α) is a fundamental yet poorly understood concept in finance. Simply put, it is the difference between the return of an investment and that of a risk-adjusted benchmark. In a more advanced definition, alpha is the residual in an asset pricing equation (see Appendix A). Alpha is what active managers strive to achieve and passive managers do not pursue.
In suburban Texas, a neighborhood complete with an amphitheater, dance hall and goat farm is scheduled to be erected 40 miles from Houston’s downtown — providing municipal-bond investors a window to bet on one of the fastest-growing areas of the US.
When looking at the increasingly complex structure of corporate lending in the present day, it can be easy to lose sight of the purpose of private credit and its lasting value to investors.
Over the past several years, high-yield bonds have delivered impressive returns, outperforming most other sectors of the fixed income market.
We expect bond yields to trend gradually lower—but it may be a bumpy ride. These seven strategies may help investors take advantage.
CLOs have delivered the most attractive risk-adjusted returns in fixed income over the past decade, but are often deemed 'too complex.'
We think it would be a mistake for investors to let tighter spreads and upcoming maturities deter them from the euro high-yield market.
At a finance conference in London this summer, four senior investment bankers set about persuading the room that the $1.7-trillion private credit market isn’t a threat to Wall Street. Barely three months later, two of them have jumped ship to seek their fortunes in the upstart asset class.
When stock markets rise, the bullish narrative tends to dominate, overlooking the potential impact of market declines. This oversight stems from two main problems: a basic misunderstanding of math and time’s critical role in investing.
From "how" to "why now," here are four things investors should understand about bond investing.
With the decision on Wednesday to lower interest rates (for the first time since March of 2020) by a substantial 50 basis points (bps), rather than the 25 bps cut we typically see at the beginning of an easing cycle, the Fed is showing confidence that the disinflation trend will continue.
The Federal Reserve’s looming rate cuts are fueling a rally in the riskiest corner of the US corporate bond market, but some investors are concerned the party may not last.
With tax-loss harvesting season on the horizon, investors may want to consider a pair of tax-conscious, active fixed income ETFs.
Recent Fed commentary and economic data have crystallized investor confidence in rate cuts coming in less than a week
In a recent interview, Timothy Crawmer, global credit strategist at Payden & Rygel ($156.8 billion AUM), says it is the firm’s view that the Federal Reserve is going to start the rate cutting efforts in September with a 25 by 25 basis points, likely followed by another two 25 basis point cuts in November and December.
High-yield investors put off by today’s narrow spreads could be missing out.
The main focus for investors should is no longer if the Fed will cut rates in 2024, but how much and how quickly the Fed will lower interest rates.
High-yield bonds have been one of the best-performing bond investments so far this year, but there may be better entry points down the road.
It’s been the ultimate no-brainer for more than a year: Park your money in super-safe Treasury bills, earn yields of more than 5%, rinse and repeat. Or as billionaire bond investor Jeffrey Gundlach put it last October, “T-bill and chill.”
We explore how strong fundamentals and a resilient economy may position high-yield bonds as a potentially compelling choice in today’s fluctuating market.
Because there is unprecedented use of the word “unprecedented,” we thought it appropriate to expand our annual Charts for the Beach from 5 charts to 10 charts and tables this year. So, probably best to stay under the beach umbrella as you read our unprecedented extended edition.
The BlackRock Flexible Income ETF (BINC) launched less than 15 months ago and is already approaching $4 billion in AUM.
A dizzying start to August, which saw US stocks whiplashed by economic jitters, lackluster earnings and the unwinding of the global yen carry trade, has left Wall Street searching for corners of the market that may have been unfairly punished.
Multi-asset strategies must adapt to a promising—but changeable—environment for generating income.
Municipal bonds maintained their summer strength and posted a second-consecutive month of positive performance in July.
In this PIMCO Perspectives, we explore the dispersion playing out across monetary policy and financial markets.
Over the past 20 years, the corporate bond market has experienced an evolution driven by cycles, regulatory shifts, and changing demand.
The US Department of Labor (DOL) offers eight tips for advisors to use to review target-date funds. Our Mike Dullaghan illustrates how to use the DOL tips in preparation for plan review season.
Improving inflation and growth scenarios should enhance the equities and bond dynamic for multi-asset investors.
With growth moderating and inflation cooling, the US seems on track for a soft landing—as markets digest a stream of incoming information. Equity performance may be on the verge of broadening beyond a handful of stocks, and still-sizable bond yields bolster return potential.
I almost exclusively talk about stocks here in Dividend Digest because dividends are at the root of my strategy. But most income investing includes some level of exposure to debt.
Relatively high yields mean investors who have been focusing on short-term securities wouldn't need to sacrifice much yield if they chose MBS to help limit their reinvestment risk.
Investors could be shifting to safer debt, which could outperform once the Federal Reserve starts cutting interest rates.
Portfolio Manager Daniel Siluk believes subsiding inflation and declining interest rates underpin a compelling argument for investors to reallocate funds away from money market strategies toward shorter-dated bonds.
The barbarians are back at the gates. Morgan Stanley and Goldman Sachs Group Inc. are confident that their most important clients are about to get active after a long spell on the sidelines and help goose the long-awaited revival in investment banking fees.
Elections have been anything but easy for investors. What has been easy is financial conditions in the US relative to the level of policy rates, fostering the debate over the degree of policy restrictiveness as global monetary easing begins.
Credit markets are breathing a sigh of relief after inflation data showed price pressures are cooling broadly, but a weakening economy poses fresh risks to corporate debt.
Softening inflation supports the potential for a Federal Reserve interest rate cut in coming months, but there are complexities below the surface.
No matter who wins November’s US presidential election, there’s a growing risk that Americans will be paying higher taxes next year, according to MacKay Shields LLC. That makes muni bonds an attractive shield.
Explore the complexities of the high-yield market through comprehensive insights from our experts.
Last week we had our quarterly live call for Yield Shark subscribers. We had some great conversations over the course of the hour. One of the major topics that came up was what will happen through the end of the year. Will we see a correction or a rotation? If so, when will this happen? And most important, how can we prepare?
Don’t miss out. Prepare to take advantage of opportunities in the second half.
Rick Rieder and team argue that the economy is making further progress towards normalization and continues to offer a once-in-a-generation investing opportunity, which isn’t adequately represented by the benchmarks.
The Asian high-yield market is evolving faster than investor perceptions.
Today emerging markets are too big to ignore. The asset class represents a large and growing proportion of the world economy, accounting for over 40% of global GDP in 2022. The asset class includes a broad spectrum of issuers, with investment opportunities of varying risk/return.
Some experts believe investment-grade corporate bonds remain an opportunity-rich corner of the fixed income market.
In his mid-year outlook, Jim Cielinski, Global Head of Fixed Income, recognizes markets were impatient in wanting rate cuts, but the offset is fresh opportunities for investors to capture attractive yields.
On this episode of the “ETF of the Week” podcast, VettaFi’s Head of Research Todd Rosenbluth discussed the BondBloxx CCC-Rated USD Yield Corporate Bond ETF (XCCC) with Chuck Jaffe of “Money Life.” The pair talked about several topics regarding the fund to give investors a deeper understanding of the ETF overall.
Investment-grade corporate bonds remain attractive given their lower risk and relatively high yields. Long-term investors who can handle volatility might consider high-yield bonds and preferred securities, but we wouldn't suggest large positions in either.
Some money managers that buy junk bonds have been pouring money into investment-grade notes instead, because the yields can be almost as high now.
Senior loan ETFs have gained traction as elevated rate expectations spill over into the second half of the year.
High-yield credit is experiencing strong inflows and investor confidence, potentially offering attractive returns and reduced volatility compared to other risk assets.
Municipal bonds deviated from U.S. fixed income assets and posted negative performance in May.
VettaFi discusses spot ether ETFs, spot bitcoin ETFs, and the crypto ETF universe.
The investment landscape has proved remarkably resilient thus far in 2024 given several headwinds including inflation, interest rates, and the unsettled geopolitical situation. Fortunately, employment remains solid, and companies continue to deliver improved profit growth.
Cboe’s Rob Marrocco goes around the world of ETFs, discussing everything from the potential ETF share class structure to what comes next for the industry. VettaFi’s Lara Crigger highlights year-to-date ETF flows, provides an update on spot ether ETFs, and goes in-depth on the prospective Texas Stock Exchange.
Looking into the second half of the year, we are optimistic that returns will be stronger, but also expect volatility to remain elevated.
Join the experts at John Hancock Investment Management on June 11th at 2pm ET for an educational webcast that explores how investors can get the most out of their high-yield exposure.
Alliance Bernstein converted two short duration mutual funds, worth almost $800 million in assets under management, into ETFs on Monday.
This week, the International Air Transport Association (IATA) significantly upgraded its profitability projections for airlines in 2024. The trade group now expects net profits to reach $30.5 billion, an increase from $27.4 billion in 2023.
US exchange-traded funds investing directly in Bitcoin attracted net inflows for an unprecedented 18th straight day, a spurt of demand that has helped to lift the largest digital asset toward a record high.
Historically, the level of U.S. debt has had no correlation with the performance of the stock or bond markets.
BlackRock Inc., Citadel Securities and other investors are backing an upstart Texas stock market, laying down a challenge to the New York Stock Exchange and Nasdaq Inc. and signaling a potential boost for a state trying to grab more of the financial services industry.
There are many historical relationships within financial markets based on sound economic theory, which accordingly repeat cycle after cycle. High yield bonds and small cap stocks typically move in line with each other, but the two have diverged since 2022.
While the money and bond markets continue their Fed-watch saga, there is one constant that we have been emphasizing for the fixed income landscape: a new rate regime.
When it comes to investing in consumer debt, headlines may be misleading. We see opportunity.
Since the Global Financial Crisis of 2007-09, fixed income investors have suffered the worst of both worlds. For a dozen years they endured the stingiest of yields on their fixed income holdings.
Franklin Templeton Fixed Income CIO Sonal Desai discusses why rising investment and persistently loose US fiscal policy are simultaneously pushing in the direction of higher long-term real interest rates.
Interest in active fixed income products has swelled in 2024, as credit spreads narrow and the Federal Reserve holds fast to a “will they, won’t they” game.
There’s no denying that human emotions play a role in managing money. Even someone who’s usually level-headed can get caught up in excitement, fear, or uncertainty.
Private capital is increasingly being used to finance consumer spending.
Recent challenges from higher rates and banking turmoil are well known to investors in preferred securities, but the performance of this asset class relative to other alternatives in fixed income may not be. Here’s why we think preferreds continue to offer attractive total return potential and a tax-advantaged income stream.
High-Yield Bonds
The Fed Acknowledges the Elephant in the Room
In the report, Global Head of Fixed Income Jim Cielinski and Head of Global Short Duration Daniel Siluk believe navigating the change in rate regimes has grown more complicated for the Federal Reserve (Fed) as they must now consider the ramifications of Donald Trump’s proposed economic policies.
The ETF Boom: What’s In Store for 2025
There’s a problem brewing in the world of ETFs: We are running out of ticker symbols. Bloomberg recently reported that, with so many new funds hitting the marketplace in recent years, issuers are forced to produce catchy four-letter ticker symbols rather than the more eye-pleasing three-letter abbreviations.
Credit Risk Drops in a Knee-Jerk Reaction to Trump’s Win
Credit risk fell in reaction to Donald Trump’s US presidential win, even though his presidency may be marred by tariffs and possible trade wars.
Empowering Change: The Role of Social Bonds in Promoting Gender Equality
Franklin Templeton Fixed Income believes investing in companies promoting gender equality and diversity can lead to inclusivity and strong financial returns. Despite the persistent gender gap, there's an increase in women in leadership roles, positively impacting financial performance, corporate governance and crisis resilience.
Election Promises Meet Reality
Brandywine Global: With the US election imminent, looking past heightened emotions and uncertainty to the potential economic and market impacts can be difficult. But election rhetoric eventually meets reality.
2024 Economic & Market Outlook: The Final Stretch
Here we are, another calendar quarter down with one more to go in 2024, and investors have yet to see a “hard landing” emerge.
Fade the Election – Part 2: Debt & Deficits
The most common questions we’ve been asked as the election approaches are generally about the Federal debt and deficits. Many investors worry about a looming “day of reckoning” for US debt. They fear the US’s fiscal imprudence will eventually force a sudden and dramatic repricing of US debt. In this insight, we explore the modern history of US debt to GDP across several Presidential administrations and outline why investors should not be worried about a financial apocalyptic abyss.
The Benefits of a Flexible Core
Investment grade bonds have long been synonymous with a “core” fixed income allocation, but we believe a flexible strategy also belongs in most bond portfolios, as managers can adjust their exposure based on market conditions.
Weird Things Are Happening in the Bond Market
The US presidential election Nov. 5 is shaping up to be the mother of event risks so you’d think the safest of all havens would be holding up. But it’s not — and that’s only one of the notable anomalies springing up in financial markets. Yields on 10-year US Treasuries have risen nearly 70 basis points since the Federal Reserve's punchy half-point initial rate cut on Sept. 17.
Capital Markets Outlook 4Q 2024—Normalization: Endgame
Normalization seems to be in its final stage, with the Fed expected to continue cutting rates.
How a $33 Billion Fund Manager Scored a Perfect Record Betting on Value
To those who argue that value investing has gotten too hard in today’s momentum-chasing, passive-driven world, Scott McBride’s results are a bit of a conundrum.
Vanguard Sticks to Higher-Quality Debt ‘Playbook’ as US Economy Expected to Slow
Vanguard Group Inc. sees more opportunities in the lowest rung of investment-grade bonds, even as spreads for triple-B notes reached their tightest since 1998 last week.
AI's Impact on the Surge of Nuclear Investments: Everything You Need to Know
Explore how AI fuels nuclear investments, drives energy demand, and attracts tech giants to nuclear power.
Investing in an Era of Flouted Rules
The tendency to blindly follow these rules has led investors towards prematurely de-risking and over-estimating the likelihood of recession.
Q3 2024: Shifting Tides: Broad-Based Optimism Fuels Market Momentum
Markets changed character to broad-based optimism relating to the economy. The economic picture began to come into focus with inflation continuing to moderate as the economy maintains steady growth and employment. The result was a stark turnaround for economically integrated or interest rate sensitive assets, which resulted in a great quarter for diversified multi-asset portfolios. New Frontier sets a major milestone in Q4, marking 20 years of investing at the end of October.
The Multifaceted Impact of Federal Reserve Easing Cycles on Financial Markets
Fed easing cycles and lowered target interest rates impact various economic sectors, such as mortgages, consumer credit and cash investments.
Fourth Quarter Strategic Income Outlook
Credit indices rallied during the third quarter, despite a variety of economic headwinds, and it appears FOMO (fear of missing out) is fueling the bullish sentiment more than fundamentals.
Q3 Recap: Value Begins to Take Leadership
Quarterly recap: Fed rate cut and Chinese stimulus take the spotlight.
The Alpha Equation: Myths and Realities
Alpha (α) is a fundamental yet poorly understood concept in finance. Simply put, it is the difference between the return of an investment and that of a risk-adjusted benchmark. In a more advanced definition, alpha is the residual in an asset pricing equation (see Appendix A). Alpha is what active managers strive to achieve and passive managers do not pursue.
Private Equity-Backed Texas Housing Development Taps Muni Market
In suburban Texas, a neighborhood complete with an amphitheater, dance hall and goat farm is scheduled to be erected 40 miles from Houston’s downtown — providing municipal-bond investors a window to bet on one of the fastest-growing areas of the US.
The Enduring Value of Private Credit
When looking at the increasingly complex structure of corporate lending in the present day, it can be easy to lose sight of the purpose of private credit and its lasting value to investors.
Navigating High-Yield Bonds: Opportunities, Risks and Fallen Angels
Over the past several years, high-yield bonds have delivered impressive returns, outperforming most other sectors of the fixed income market.
Fixed-Income Outlook: Strategies for a Controlled Descent
We expect bond yields to trend gradually lower—but it may be a bumpy ride. These seven strategies may help investors take advantage.
CLO Cheat Sheet: How to Answer Questions About CLOs
CLOs have delivered the most attractive risk-adjusted returns in fixed income over the past decade, but are often deemed 'too complex.'
Why the Euro High-Yield Market May Be Worth the Risk
We think it would be a mistake for investors to let tighter spreads and upcoming maturities deter them from the euro high-yield market.
Bonus-Starved Bankers Are Jumping Ship for Private Credit Riches
At a finance conference in London this summer, four senior investment bankers set about persuading the room that the $1.7-trillion private credit market isn’t a threat to Wall Street. Barely three months later, two of them have jumped ship to seek their fortunes in the upstart asset class.
Market Declines And The Problem Of Time
When stock markets rise, the bullish narrative tends to dominate, overlooking the potential impact of market declines. This oversight stems from two main problems: a basic misunderstanding of math and time’s critical role in investing.
How to Build a Bond Portfolio
From "how" to "why now," here are four things investors should understand about bond investing.
The Federal Reserve Just Slashed Rates by 50 Basis Points
With the decision on Wednesday to lower interest rates (for the first time since March of 2020) by a substantial 50 basis points (bps), rather than the 25 bps cut we typically see at the beginning of an easing cycle, the Fed is showing confidence that the disinflation trend will continue.
Junk Bond Investors Are Getting Ahead of ‘Rate Cutting Party’
The Federal Reserve’s looming rate cuts are fueling a rally in the riskiest corner of the US corporate bond market, but some investors are concerned the party may not last.
Tax-Loss Harvesting? These Fixed Income ETFs Deserve a Look
With tax-loss harvesting season on the horizon, investors may want to consider a pair of tax-conscious, active fixed income ETFs.
Positioning Ahead of the Fed: ETFs for a Lower Rate Era
Recent Fed commentary and economic data have crystallized investor confidence in rate cuts coming in less than a week
Position Your Portfolio for a Soft Landing
In a recent interview, Timothy Crawmer, global credit strategist at Payden & Rygel ($156.8 billion AUM), says it is the firm’s view that the Federal Reserve is going to start the rate cutting efforts in September with a 25 by 25 basis points, likely followed by another two 25 basis point cuts in November and December.
High-Yield Opportunity Persists, Despite Tight Spreads
High-yield investors put off by today’s narrow spreads could be missing out.
Fed Rate Cuts Coming in September: What’s Next?
The main focus for investors should is no longer if the Fed will cut rates in 2024, but how much and how quickly the Fed will lower interest rates.
High-Yield Bonds: Are They Attractive Now?
High-yield bonds have been one of the best-performing bond investments so far this year, but there may be better entry points down the road.
‘T-Bill and Chill’ Is a Hard Habit for Investors to Break
It’s been the ultimate no-brainer for more than a year: Park your money in super-safe Treasury bills, earn yields of more than 5%, rinse and repeat. Or as billionaire bond investor Jeffrey Gundlach put it last October, “T-bill and chill.”
High-Yield Bonds: Exploring Opportunities in a Volatile Market
We explore how strong fundamentals and a resilient economy may position high-yield bonds as a potentially compelling choice in today’s fluctuating market.
Charts for the Beach 2024
Because there is unprecedented use of the word “unprecedented,” we thought it appropriate to expand our annual Charts for the Beach from 5 charts to 10 charts and tables this year. So, probably best to stay under the beach umbrella as you read our unprecedented extended edition.
Golden Age for Fixed Income at BlackRock
The BlackRock Flexible Income ETF (BINC) launched less than 15 months ago and is already approaching $4 billion in AUM.
Big Tech, Health-Care and High-Yield Stocks Are Dip-Buying Targets
A dizzying start to August, which saw US stocks whiplashed by economic jitters, lackluster earnings and the unwinding of the global yen carry trade, has left Wall Street searching for corners of the market that may have been unfairly punished.
Dynamic Landscape for Multi-Asset Income Seekers
Multi-asset strategies must adapt to a promising—but changeable—environment for generating income.
Active Management Will Drive Muni Returns in 2024
Municipal bonds maintained their summer strength and posted a second-consecutive month of positive performance in July.
Summer of Dispersion
In this PIMCO Perspectives, we explore the dispersion playing out across monetary policy and financial markets.
Notes from the Desk: The Evolution of the Corporate Bond Market
Over the past 20 years, the corporate bond market has experienced an evolution driven by cycles, regulatory shifts, and changing demand.
Maximizing 401(k) Plans: How Financial Advisors Can leverage the DOL’s Target-Date Tips
The US Department of Labor (DOL) offers eight tips for advisors to use to review target-date funds. Our Mike Dullaghan illustrates how to use the DOL tips in preparation for plan review season.
Multi-Asset Mid-Year Outlook Global Growth Picture Supports Risk Assets
Improving inflation and growth scenarios should enhance the equities and bond dynamic for multi-asset investors.
Capital Markets Outlook 3Q 2024: Distinguishing Signal from Noise
With growth moderating and inflation cooling, the US seems on track for a soft landing—as markets digest a stream of incoming information. Equity performance may be on the verge of broadening beyond a handful of stocks, and still-sizable bond yields bolster return potential.
Every Dividend Investor Needs This in Their Portfolio
I almost exclusively talk about stocks here in Dividend Digest because dividends are at the root of my strategy. But most income investing includes some level of exposure to debt.
Why to Consider Mortgage-Backed Securities Now
Relatively high yields mean investors who have been focusing on short-term securities wouldn't need to sacrifice much yield if they chose MBS to help limit their reinvestment risk.
Rate Cuts Could See Investment-Grade Debt Outperform
Investors could be shifting to safer debt, which could outperform once the Federal Reserve starts cutting interest rates.
Outpacing Money Markets: The Historical Yield Advantage of Short-Dated Bonds
Portfolio Manager Daniel Siluk believes subsiding inflation and declining interest rates underpin a compelling argument for investors to reallocate funds away from money market strategies toward shorter-dated bonds.
Wall Street Senses the Barbarians Are Finally at the Gates
The barbarians are back at the gates. Morgan Stanley and Goldman Sachs Group Inc. are confident that their most important clients are about to get active after a long spell on the sidelines and help goose the long-awaited revival in investment banking fees.
Easing Into Elections
Elections have been anything but easy for investors. What has been easy is financial conditions in the US relative to the level of policy rates, fostering the debate over the degree of policy restrictiveness as global monetary easing begins.
Correlations Between Credit and Equities Are Breaking Down
Credit markets are breathing a sigh of relief after inflation data showed price pressures are cooling broadly, but a weakening economy poses fresh risks to corporate debt.
Schwab Market Perspective: Connecting the Pieces
Softening inflation supports the potential for a Federal Reserve interest rate cut in coming months, but there are complexities below the surface.
Tax Hikes Seen No Matter Who’s President, Making Muni Bonds Attractive
No matter who wins November’s US presidential election, there’s a growing risk that Americans will be paying higher taxes next year, according to MacKay Shields LLC. That makes muni bonds an attractive shield.
Finding Value in High-Value Bonds and Credit Markets
Explore the complexities of the high-yield market through comprehensive insights from our experts.
What’s the Plan for the Second Half of the Year?
Last week we had our quarterly live call for Yield Shark subscribers. We had some great conversations over the course of the hour. One of the major topics that came up was what will happen through the end of the year. Will we see a correction or a rotation? If so, when will this happen? And most important, how can we prepare?
Fixed-Income Midyear Outlook: Sail with the Tide
Don’t miss out. Prepare to take advantage of opportunities in the second half.
Abundant Income
Rick Rieder and team argue that the economy is making further progress towards normalization and continues to offer a once-in-a-generation investing opportunity, which isn’t adequately represented by the benchmarks.
Asia’s New Balance: High-Yield Market Offers More Diversity, Lower Risk
The Asian high-yield market is evolving faster than investor perceptions.
Expanding Opportunities in Emerging Markets Debt
Today emerging markets are too big to ignore. The asset class represents a large and growing proportion of the world economy, accounting for over 40% of global GDP in 2022. The asset class includes a broad spectrum of issuers, with investment opportunities of varying risk/return.
High-Quality Corporate Bonds Look Alluring
Some experts believe investment-grade corporate bonds remain an opportunity-rich corner of the fixed income market.
Fixed Income Outlook: Paid to Wait for Rate Cuts
In his mid-year outlook, Jim Cielinski, Global Head of Fixed Income, recognizes markets were impatient in wanting rate cuts, but the offset is fresh opportunities for investors to capture attractive yields.
BondBloxx CCC-Rated USD High Yield Corporate Bond ETF (XCCC)
On this episode of the “ETF of the Week” podcast, VettaFi’s Head of Research Todd Rosenbluth discussed the BondBloxx CCC-Rated USD Yield Corporate Bond ETF (XCCC) with Chuck Jaffe of “Money Life.” The pair talked about several topics regarding the fund to give investors a deeper understanding of the ETF overall.
2024 Mid-Year Outlook: Corporate Bonds
Investment-grade corporate bonds remain attractive given their lower risk and relatively high yields. Long-term investors who can handle volatility might consider high-yield bonds and preferred securities, but we wouldn't suggest large positions in either.
High-Grade Company Bonds Increasingly Trade Near Junk Levels
Some money managers that buy junk bonds have been pouring money into investment-grade notes instead, because the yields can be almost as high now.
Business of Bonds: Senior Loan ETFs Take the Spotlight
Senior loan ETFs have gained traction as elevated rate expectations spill over into the second half of the year.
Navigating High-Yield Credit Opportunities in a Resilient Market
High-yield credit is experiencing strong inflows and investor confidence, potentially offering attractive returns and reduced volatility compared to other risk assets.
Active Management Will Drive Muni Returns in 2024
Municipal bonds deviated from U.S. fixed income assets and posted negative performance in May.
Crypto ETFs: Ether Not an Either/Or Story With Bitcoin
VettaFi discusses spot ether ETFs, spot bitcoin ETFs, and the crypto ETF universe.
Mid-Year Market Outlook
The investment landscape has proved remarkably resilient thus far in 2024 given several headwinds including inflation, interest rates, and the unsettled geopolitical situation. Fortunately, employment remains solid, and companies continue to deliver improved profit growth.
Cboe’s Rob Marrocco Talks ETF Share Classes, Crypto ETFs, Rise of Active, & More
Cboe’s Rob Marrocco goes around the world of ETFs, discussing everything from the potential ETF share class structure to what comes next for the industry. VettaFi’s Lara Crigger highlights year-to-date ETF flows, provides an update on spot ether ETFs, and goes in-depth on the prospective Texas Stock Exchange.
Mid-Year Outlook: Fixed Income
Looking into the second half of the year, we are optimistic that returns will be stronger, but also expect volatility to remain elevated.
Thinking Actively About High Yield ETFs
Join the experts at John Hancock Investment Management on June 11th at 2pm ET for an educational webcast that explores how investors can get the most out of their high-yield exposure.
AB Converts Short Duration Mutual Funds Into ETFs
Alliance Bernstein converted two short duration mutual funds, worth almost $800 million in assets under management, into ETFs on Monday.
Airlines To See $30 Billion Profit On Record Passenger Numbers: IATA
This week, the International Air Transport Association (IATA) significantly upgraded its profitability projections for airlines in 2024. The trade group now expects net profits to reach $30.5 billion, an increase from $27.4 billion in 2023.
US Bitcoin ETFs Post Longest Run of Inflows as Token Nears Record
US exchange-traded funds investing directly in Bitcoin attracted net inflows for an unprecedented 18th straight day, a spurt of demand that has helped to lift the largest digital asset toward a record high.
Deficits, Debt and Markets: Myths vs. Realities
Historically, the level of U.S. debt has had no correlation with the performance of the stock or bond markets.
BlackRock, Citadel Back Texas Stock Exchange in Challenge to NYSE
BlackRock Inc., Citadel Securities and other investors are backing an upstart Texas stock market, laying down a challenge to the New York Stock Exchange and Nasdaq Inc. and signaling a potential boost for a state trying to grab more of the financial services industry.
Something’s Gotta Give
There are many historical relationships within financial markets based on sound economic theory, which accordingly repeat cycle after cycle. High yield bonds and small cap stocks typically move in line with each other, but the two have diverged since 2022.
U.S. Credit: We’re Not in Uncharted Territory
While the money and bond markets continue their Fed-watch saga, there is one constant that we have been emphasizing for the fixed income landscape: a new rate regime.
Underwriting the Underwriters: Finding Opportunity in Consumer Loans
When it comes to investing in consumer debt, headlines may be misleading. We see opportunity.
Options for Income
Since the Global Financial Crisis of 2007-09, fixed income investors have suffered the worst of both worlds. For a dozen years they endured the stingiest of yields on their fixed income holdings.
On My Mind: The Twin Roots of Rising Rates
Franklin Templeton Fixed Income CIO Sonal Desai discusses why rising investment and persistently loose US fiscal policy are simultaneously pushing in the direction of higher long-term real interest rates.
Golden Age for Active Bond ETFs?
Interest in active fixed income products has swelled in 2024, as credit spreads narrow and the Federal Reserve holds fast to a “will they, won’t they” game.
Navigating Client Emotions with Behavioral Economics
There’s no denying that human emotions play a role in managing money. Even someone who’s usually level-headed can get caught up in excitement, fear, or uncertainty.
Asset-Based Finance: Private Credit’s Key Diversifier
Private capital is increasingly being used to finance consumer spending.
Reiterating the Case for Preferred Securities
Recent challenges from higher rates and banking turmoil are well known to investors in preferred securities, but the performance of this asset class relative to other alternatives in fixed income may not be. Here’s why we think preferreds continue to offer attractive total return potential and a tax-advantaged income stream.