High-Yield Bonds

For investors looking to get ahead of the greater bond market, Eaton Vance's Total Return Bond ETF can do the trick.

It is important for savers to understand guaranteed and non-guaranteed options when looking at retirement solutions offered within a 401(k) plan. Our Mike Dullaghan shares the highlights and talks about the need for personalized strategies.

For most of the last fifty years, fixed income investing has been characterized by owning some combination of Municipals, Corporates, Treasuries and Agency Mortgage-Backed Securities which has worked well with periods of secular disinflation.

We seek to capitalize on today’s attractive yields while staying mindful of economic and market uncertainties.

Balancing credit risk with interest-rate risk in a dynamically managed portfolio can be an all-weather approach.

Municipal bonds broke their winning streak in October, posting negative total returns alongside broader fixed income assets.

U.S. rate cuts of up to 200bps are anticipated by the end of 2025 but with significant further downside if recession risks materialize.

Emerging-market (EM) corporates have a track record of resilience across market cycles.

Recent insights from Natixis Investment Managers breaks down a few fixed income risks that investors may not be aware of.

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.

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.

Normalization seems to be in its final stage, with the Fed expected to continue cutting rates.

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.

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.

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.

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.

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.

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.

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.

Softening inflation supports the potential for a Federal Reserve interest rate cut in coming months, but there are complexities below the surface.

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.