July 1, 2022

Read our views on trends in the fixed income market. Or explore other investing topics:

4 Reasons to Be Cautious With High-Yield Bonds

Given that tighter financial conditions are on the horizon, high-yield bonds may not be as attractive as they have been over the past few years. We look at four factors that indicate it may be especially prudent to proceed with caution when it comes to high-yield bonds.

Opportunities Come Knocking in the Muni Market

With inflation at its highest point in decades and the Federal Reserve expected to continue to aggressively raise interest rates, municipal bonds may offer opportunities not seen in years.

8 Questions on the Bond Market and Rate Hikes

More interest rate hikes are likely this year as the Federal Reserve tries to curb inflation; here are answers to eight common questions on ways these hikes may affect the fixed income markets and how to navigate this higher-rate environment.

At Last—Income in the Fixed Income Market

The first quarter was brutal for fixed income investors, as bond prices fell and yields rose. However, the steep rise in yields should mean that income investors can finally earn relatively attractive yields in the bond market, after enduring nearly three years of near-zero interest rates.

Why to Consider Preferred Securities Now

Prices have fallen sharply, creating an opportunity for income-oriented investors who can ride out the volatility. Some caution is warranted, however, and we do think prices can fall modestly from here, given the heightened risks.

Muni Pension Risk? It's in the Past for Now

A few years ago, unfunded pensions for state and local governments were expected to be a big problem for the municipal bond market. That never happened. Instead, unfunded pension liabilities are in their best condition in nearly a decade.

Preferred Securities: Balancing Yield with Risk

Preferred securities' higher yields may be appealing, but they almost always come with additional risks. While preferreds can make sense for a more-aggressive part of your income portfolio, it's important to understand the tradeoffs.

Bond Market: Waiting for Liftoff

The Federal Reserve is expected to starting hiking short-term rates at its March meeting, and markets have priced in a total of five rate increases this year. That's a fast pace. Is it likely?

What Happens to Munis When the Fed Hikes Rates?

Investors may assume that rising rates result in negative returns for municipal bonds. However, that hasn't been the case during the three most recent cycles.

Floating-Rate Notes: 3 Things to Consider

If the Federal Reserve hikes rates, investment-grade floating-rate note yields may rise. There are pros and cons to investing in floaters, however, and performance relative to fixed-rate corporate bonds can vary.