Earnings Season & High Demand for Corporate Bonds

January 26, 2024 Liz Ann SondersKathy Jones
How have Q4 corporate earnings fared so far, and what's behind the strong demand for investment-grade corporate bonds?
Transcript Open new window

After you listen

Get up-to-the-minute market data and analysis from Schwab experts on social media.

Get up-to-the-minute market data and analysis from Schwab experts on social media.

@LizAnnSonders
  • @KathyJones
  • " role="dialog" aria-label="

    Get up-to-the-minute market data and analysis from Schwab experts on social media.

    " id="body_disclosure--media_disclosure--155456" >

    Get up-to-the-minute market data and analysis from Schwab experts on social media.

    In this episode, Kathy and Liz Ann discuss the likelihood for interest rate cuts in March versus May, Q4 corporate earnings season, credit market health, and the strong demand for investment-grade corporate bonds. 

    Liz Ann gives her review of corporate earnings season—and what to look for in the coming week. Kathy analyzes the status of the Fed's tightening schedule and provides an overview of the data releases for the coming week. 

    If you enjoy the show, please leave a rating or review on Apple Podcasts.

    Get Schwab's view on markets and economy.

    Why to Consider Longer-Term Bonds Now

    Short-term bond yields are high currently, but with the Federal Reserve poised to cut interest rates investors may want to consider longer-term bonds or bond funds.

    Opening Market Update

    NVDA carried the rest of the market up in premarket trading as demand for AI continues, while EV automakers Lucid and Rivian missed expectations and disappointed investors.

    Considering Bonds? What to Know Before You Buy

    After a rough couple of years, there are real opportunities in bonds. What do you need to know to make better decisions on when and what to buy?

    The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision. 

    All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness, or reliability cannot be guaranteed. 

    Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve.

    All corporate names and market data shown above are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security. Supporting documentation for any claims or statistical information is available upon request.

    Investing involves risk, including loss of principal.

    The policy analysis provided by the Charles Schwab & Co., Inc., does not constitute and should not be interpreted as an endorsement of any political party.

    Diversification and asset allocation strategies do not ensure a profit and do not protect against losses in declining markets.

    Indexes are unmanaged, do not incur management fees, costs, and expenses, and cannot be invested in directly. For additional information, please see schwab.com/indexdefinitions.

    The information and content provided herein is general in nature and is for informational purposes only. It is not intended, and should not be construed, as a specific recommendation, individualized tax, legal, or investment advice. Tax laws are subject to change, either prospectively or retroactively. Where specific advice is necessary or appropriate, individuals should contact their own professional tax and investment advisors or other professionals (CPA, Financial Planner, Investment Manager) to help answer questions about specific situations or needs prior to taking any action based upon this information.

    Performance may be affected by risks associated with non-diversification, including investments in specific countries or sectors. Additional risks may also include, but are not limited to, investments in foreign securities, especially emerging markets, real estate investment trusts (REITs), fixed income, small capitalization securities and commodities. Each individual investor should consider these risks carefully before investing in a particular security or strategy.

    Past performance is no guarantee of future results and the opinions presented cannot be viewed as an indicator of future performance.

    Forecasts contained herein are for illustrative purposes only, may be based upon proprietary research and are developed through analysis of historical public data.

    Apple, the Apple logo, iPad, iPhone, and Apple Podcasts are trademarks of Apple Inc., registered in the U.S. and other countries. App Store is a service mark of Apple Inc.

    Google Podcasts and the Google Podcasts logo are trademarks of Google LLC.

    Spotify and the Spotify logo are registered trademarks of Spotify AB.

    0124-FB4A