Fixed Income

September 29, 2022

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

Are Bank Loans Right for You?

In an environment of rising interest rates, bank loans may appear attractive on the surface, but it's important that investors consider three important factors.

Schwab Market Perspective: Determined to Rise

Will anything tempt the Federal Reserve from its aggressive course on interest rates? The odds aren't good.

4 Reasons to Consider IG Corporate Bonds Now

Investment-grade corporate bond yields are near multi-year highs, making them attractive for income-seeking investors. Although an economic slowdown may negatively impact all corporations, investment-grade corporate bonds should be better positioned than high-yield bonds in case market volatility does pick up.

6 Reasons Munis May Be a Haven in a Recession

Municipal bonds have characteristics that historically have helped buffer negative performance during recessions. From relatively high and stable ratings to low historical default rates, here are some reasons why recession-wary investors may want to consider municipal bonds.

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.

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.

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.

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.

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.