Fixed Income

August 6, 2022

Read our views on trends in the fixed income market affecting bonds, CDs, and money markets. Or explore other investing topics:

The Strong Dollar: Can It Continue?

A trifecta of factors support the dollar, including the relatively strong performance of the U.S. economy, tightening monetary policy by the Federal Reserve, and safe-haven buying. These are likely to remain intact into 2023.

Five Big Issues Top Washington's To-Do List

With several key issues moving to the front burner in Washington, investors are asking questions about what they could mean to their finances now and into retirement.

MBS: Yields are Up, but Fed Policy Poses a Risk

Mortgage-backed securities (MBS) yields may have room to rise as the Federal Reserve continues its "quantitative tightening" process. However, MBS have unique characteristics that investors should understand before considering them as an investment.

5 Common Mistakes Muni Investors Make and How to Correct Them

Despite their best efforts, muni investors often unknowingly make mistakes with their portfolios which can lead to poor financial outcomes. The good news is that most mistakes can be corrected.

Schwab Market Perspective: Crossroads

Amid signs of slowing growth, the economy has reached a fork in the road on several key issues. Some clarity may emerge later this month, as earnings season begins and Federal Reserve policymakers meet again.

Fed Rate Hikes: Why Are Bond Yields Falling?

The Federal Reserve's pledge to curb inflation appears to have resonated with the market. If the central bank raises rates as much as recent projections indicate, the risk of recession rises. Consequently, bond yields have been pulling back from recent highs and the yield curve has flattened.

2022 Mid-Year Muni Market Outlook

We suggest that muni investors consider taking advantage of the recent selloff by moving up in both credit quality and coupon structure, and moderately extending duration.

2022 Mid-Year Corporate Credit Outlook

After the steep drop in prices during the first half of this year, yields on many corporate bond investments are at or near 12-year highs. While that is attractive from an income perspective, we still suggest a maintaining a defensive approach, as risks are rising.

Fed Gets Aggressive: What's It Mean for Investors?

Sticky inflation leads Fed to give rates a bigger bump. Could change be on the horizon for the economy and the markets?

2022 Mid-Year Market Outlook: Under Pressure

Economic uncertainty may have peaked in the first half of 2022, but it remains high. Stocks are likely to continue to feel the weight of Federal Reserve policy tightening, shrinking market liquidity and slower economic growth.