But if either scenario strikes, the high quality and relatively low interest-rate risk of short-duration investment-grade credit could cushion a diversified strategy against potential market instability—at least long enough for
But if either scenario strikes, the high quality and relatively low interest-rate risk of short-duration investment-grade credit could cushion a diversified strategy against potential market instability—at least long enough for
Although credit quality in U.S. high-yield debt is supposedly higher than it has been in previous years – thanks to more bonds being secured with assets and a greater proportion of higher-quality issuance – U.S. corporates are likely
With an emphasis on investment-grade debt, a 30-day SEC yield of 5.59% and a duration of just 0.66 years, CVSB could be an ideal bond ETF for investors seeking robust income while limiting their exposure to credit and
Not only do munis offer yield, they provide fixed income investors with a tax-free option to pair low default rates in local government debt. For an all-encompassing approach to getting muni exposure, investors can consider the
Fixed income investors experienced the pull of rising yields during the first half of 2023, which included attractive options within the municipal bond market. “Most were attracted by strong muni issuer fundamentals, the
Tom Lydon, vice chairman of VettaFi, dove into the current environment and outlook for muni investors with David Hammer of PIMCO and Matthew Norton of AllianceBernstein at VettaFi’s Fixed Income Symposium. Today’s macro environment remains complex, and David
Active adds the ability to navigate inefficiencies inherent to the fixed income landscape, according to Sinha. Investors can, for example, pair an active ETF like iShares’ BlackRock Flexible Income ETF (BINC) with
Between traditional higher-quality core bond and riskier high-yield corporate-bond funds lie strategies that offer investors a diversified approach to income generation with higher risk-adjusted return potential.
Attendees were asked numerous questions during the Symposium, and a common theme in their responses led discussions about investment-grade corporate bonds. Last week, VettaFi hosted a virtual three-hour
Robert Michaud: Similar to what investors are missing right now, I think that this highly inverted yield curve is providing a bit of a disconnect from what standard investors are used to, which is having slightly longer-
Celso Munoz, a portfolio manager with Fidelity Investments, said that he thinks “fixed income is incredibly attractive right now.” Per Greenblath, the American Century Multisector Income ETF (MUSI) offers a higher
Morris said that investing directly in Treasuries is “relatively hard to do.” “It’s hard to walk away from a 5% risk-free yield,” Gallegos said.
According to Balchunas, despite a rush back into equities this summer, fixed income ETFs have taken in 41% of flows this year. For rates and fixed income, then, Braun sees rates coming down towards the front end of the yield curve.
Firstly, the iBoxx EUR Sovereigns ESG Tilted Index reflects exposure to the eurozone government debt market by overweighing countries with a positive ESG score 1 and excluding nations in the very high risk category. The iBoxx