“The growing skepticism that the Fed will continue to deliver aggressive tightening has been emboldened” by the GDP data, Ian Lyngen, head of U.S. rates strategy at BMO Capital Markets, told Bloomberg. Treasury
Category: Fixed Income
Patient Investors Could Be Rewarded for Junk Bond Faith
Another reason, albeit longer-ranging, to mull FLHY is that some high-level investors are expressing faith in the possibilities of a high yield rebound by forming new distressed debt funds. On the other hand, with
Investors Could Be Rewarded for Junk Bond Faith
First, the aforementioned Markit iBoxx USD Liquid High Yield isn’t performing dramatically more poorly than the Bloomberg US Aggregate Bond Index, indicating that risk-tolerant investors may want to evaluate
Fallen Angels may Lead Second-Half Rebound
Fallen angels are bonds born with investment-grade ratings that are later downgraded to junk status. Conversely, some new fallen angels struggle over the near term due to loss of investment-grade ratings.
USHY Sees Risk From Rates Not Accomplishing Inflation Smash
Assuming as a starting point that inflation is only a demand-side issue, which it isn’t, would require about a base risk-free rate of 6% to stop it. If disinflation isn’t accomplished, then real rates rise and hurt the value of
High Yield Corporates & Financials See Rally
Meanwhile, high yield corporates returned 0.26% for the week ended July 15, said Nuveen’s weekly fixed income commentary . The yield on the ICE BofA U.S. High Yield Index, which tracks companies with below
The Best Bond ETFs
Do investors need bonds in their portfolios? The question is, of course, a personal one. Investors with goals in the three- to 10-year range—say, buying a new home, retiring within the next decade, or sending your
Consider CLOs for Unique Income Opportunities
Interest rates are rising, crimping a variety of income-generating assets in the process. However, real yields aren’t satisfactory, putting some income investors in a bind. With aggregate bond strategies, it’s an appropriate
There’s Renewed Interest in High Yield Fixed Income
“With equities showing off a bit a reprieve in early July and inflation expectations coming down sharply, folks were willing to dive in and take some risk in high yield,” said BondBloxx co-founder Elya Schwartzman.
Reach for Higher Yield and Active Management With This ETF
One way to approach the high yield debt market is to opt for an active management strategy. After a rough first half for the bond market, there could be some value to attain for savvy investors, including opportunities
STPZ: PIMCO’s Only TIPS ETF With Positive 1-Yr Return
STPZ invests based on the ICE BofAML 1-5 Year US Inflation-Linked Treasury Index, which the provider describes as: The fund aims to achieve the real return (above inflation), capital preservation, and low
How the Most Widely Held Bond Funds Did in the Second Quarter
Investors in the most widely held bond funds saw across-the-board losses in the second quarter, as stubbornly high inflation and rising interest rates took their toll on returns.
ESGB Is the Right Bond ETF for Net-Zero Transition
That’s a plus at a time of interest rate duress, but it could be beneficial for ESG -focused investors because traditional aggregate bond strategies don’t make intentional ESG efforts. The universe of environmental, social,
There’s Income Back in Fixed Income
As investors grapple with continued inflation, recession fears and a Federal Reserve that is “committed” to bringing down price pressures, an interesting development has occurred that has not garnered much in the