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Bond Insights

Our views on trends in the fixed income market.
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Our views on trends in the fixed income market.

Despite their relatively high risk, the yields offered by high-yield munis compared with other alternatives are lower than they have been in the past.
Bank loan prices fell sharply at the end of 2018, but the risk of further price declines remains elevated.
Risks are rising in the corporate fixed income markets, and we suggest a more cautious stance heading into 2019.
We believe municipal bond investors should take a cautious approach in 2019, amid rising economic uncertainty, concerns about trade friction and worries about the impact of higher interest rates.
On this episode of Bond Market Today, Kathy Jones explains why she thinks investors shouldn’t abandon intermediate or longer-term bonds entirely in their portfolios.
After more than two years of steadily rising interest rates, we believe 2019 could mark the peak in U.S. Treasury yields for the current business cycle. However, while the prospect of more stable or lower interest rates may be positive for bond investors, we expect the road ahead to be bumpy.
Rising long-term Treasury yields have lowered the price of preferred securities, presenting a relatively attractive entry point for long-term investors. But preferred securities come with a unique set of characteristics, including greater risks.
One potential area of compromise for the new Congress may be infrastructure spending, which could lead to increased municipal bond issuance. However, we expect demand for municipal bonds to continue to support prices next year.
The recent rout in the municipal bond market can be unsettling, but it hasn’t changed our view on the attractiveness of municipal bonds for many investors.
The Secured Overnight Financing Rate, or SOFR, has gained traction as a replacement for LIBOR, which is set to phase out by 2021. Here’s how the switch could affect your bond holdings.

Information on this site is for general informational purposes only and should not be considered individualized recommendations or personalized investment advice. The type of securities and investment strategies mentioned may not be suitable for everyone. Each investor needs to review a security transaction for his or her own particular situation. All expressions of opinion are subject to change without notice in reaction to shifting market, economic and geo-political conditions.


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