Muni Credit Plays Defense When Rates Rise
As interest rates nudge higher, many municipal bond investors worry about the impact on their portfolios. Muni credit, which holds its value better when rates rise, could be the solution.
Why Fixed-Income Investors Shouldn’t Fret About Fed Tightening
Following the Federal Reserve’s decision to raise interest rates at its March policy meeting, Franklin Templeton Fixed Income Group CIO Chris Molumphy weighs in on why fixed-income investors shouldn’t fret.
Digging Deeper for Municipal Bond Income
There’s a lot of uncertainty today for municipal bond investors: how do you hang onto the income you have in the face of rising rates and the potential for tax reform, and where should you look for more? We think muni credit is a good place to point the shovel.
Adding CEFs to a Portfolio
When adding a CEF to a portfolio, consider how the fund’s strategy may fit your overall risk exposure, says Jonathan Morgan of Canadian General Investments.
On My Radar: Nitroglycerin on a Bumpy Road
The Fed finds itself in a tricky place. Next week will likely be rate hike number three. “Three steps and a stumble?” We’ll see. My dad used to always say, “Stuck between a rock and a hard place.” I’ll try my best to explain what I see.
March 2017 Investment Outlook: "Show Me the Money"
"School days" inexorably continue at the Gross household, not just because of grandchildren, but because of the necessity to teach my own kids the complexities and pitfalls of investing.
Why Commodities Could Be on the Verge of a Massive Surge
After finishing 2016 up 25 percent, commodities are getting another boost from bullish investors. Investment bank Citigroup forecasts commodity prices will increase this year on strengthening demand in China and mounting inflation inspired by President Donald Trump’s “America First” policies.
Adjusting to a Sustained Low-Yield Environment
Unorthodox monetary policies, low and negative interest rates, and other factors such as aging demographics have led to an ongoing hunt for yield. The result has brought even risk-averse investors further and further out on the risk spectrum. This paper, Adjusting to a sustained low-yield environment examines the issues.
Insured Municipal Bonds May Offer Added Security for Investors
If an issuer defaults, insurance firms can make sure your payments don’t stop.
Bond Investors: Don’t Fear the Fed
In December, the US Federal Reserve (Fed) raised interest rates, as predicted, and raised expectations for more increases in 2017. At Invesco Fixed Income, we believe one of the best ways to handle a rising interest rate environment is to have a portfolio diversified across different credit-related asset classes.
Shundrawn Thomas on the State of the ETF Industry
Shundrawn Thomas serves as Northern Trust’s executive vice president, head of funds and managed accounts group. I spoke to him about his annual president’s perspective on the ETF industry, which was just released.
Gold Gets a Shot in the Arm from Inflation and China
Inflation just got another jolt, rising as much as 2.5 percent year-over-year in January, the highest such rate since March 2012. Led by higher gasoline, rent and health care costs, consumer prices have now advanced for the sixth straight month. In addition, January is the second straight month for rates to be above the Federal Reserve’s target of 2 percent.
The Flexible Municipal Mandate: Be Like Bamboo
Confucius wrote, “The green reed which bends in the wind is stronger than the mighty oak which breaks in a storm.” We believe that, similarly, municipal investors who choose flexible mandates will be well equipped for any type of weather.
Due to structural differences, some closed-end funds may have longer durations than their open-end fund peers, says Alaina Bompeidi of Morningstar.