I almost exclusively talk about stocks here in Dividend Digest because dividends are at the root of my strategy. But most income investing includes some level of exposure to debt.
US bonds rallied sharply as signs of a slowing economy and a recent stock-market rout fueled calls for quicker interest-rate cuts from the Federal Reserve, further juicing bets on a steeper yield curve.
When looking to pair yield and credit quality, corporate bonds are an ideal option, especially when it comes to investment-grade.
Investors flocked to the US Treasury’s monthly sale of two-year notes in a powerful demonstration of faith in Federal Reserve interest-rate cuts beginning this year.
On the latest edition of Market Week in Review, Director of Investment Strategies, Shailesh Kshatriya, discussed the recent strength in U.S. small cap stocks and the likelihood of a September rate cut from the Fed. He also provided an update on the latest inflation numbers from Canada and the UK.
Amidst a widespread deterioration in the economic landscape, it is crucial to underscore the current detrimental roles of monetary and fiscal policy.
The stock market is not a balloon that gets bigger when money “flows into” it. It doesn’t get smaller because money “flows out” of it. Holding the number of shares constant, the stock market gets bigger if investors pay a higher price for those shares. Period.
Canola oil — invented in Canada 50 years ago as a healthier, shelf-stable cooking fat — may soon venture beyond the world’s kitchen cupboards to a spot in the airways.
With both economic and inflation data continuing to weaken, expectations of Fed rate cuts are rising. Notably, following the latest consumer price index (CPI) report, which was weaker than expected, the odds of Fed rate cuts by September rose sharply. According to the CME, the odds of a 0.25% cut to the Fed rate are now 90%.
Relatively high yields mean investors who have been focusing on short-term securities wouldn't need to sacrifice much yield if they chose MBS to help limit their reinvestment risk.
Across Europe, ruling parties are under pressure. Bond investors should stay active and invested, in our view.
Issuance of green bonds surged in the first half of 2024. That could put more eyeballs on the VanEck Green Bond ETF (GRNB).
Investors could be shifting to safer debt, which could outperform once the Federal Reserve starts cutting interest rates.
For more than two years, inflation has eclipsed everything else at the Federal Reserve. In a shift eagerly awaited by global markets, that’s poised to change.
Portfolio Manager Daniel Siluk believes subsiding inflation and declining interest rates underpin a compelling argument for investors to reallocate funds away from money market strategies toward shorter-dated bonds.
US investors often stick to US markets. But that could be a costly mistake—especially today.
The dilemma that all Fed committees and chairpersons face when the economic cycle nears a turn but then repeats itself can be summed up with Fed chair Jerome Powell’s recent references: “Easing too soon, too much could harm inflation progress.” “Easing too little, too late could unduly weaken the economy.”
It's important to understand the true meaning behind the names of investment funds, especially when it comes to those labeled "tax-managed"
Goldman Sachs Group Inc. and Wells Fargo & Co. joined rival JPMorgan Chase & Co. in the tapping the US investment-grade market after reporting second-quarter earnings.
Outlook 2024: A Turning Point, released in December 2023, featured our perspective on how stocks might respond to turning points in inflation and monetary policy.
The initiation of the excessive deficit procedure will hinder European unity.
Broad measures of investment-grade municipal bonds didn’t do much of anything in the first half of 2024, but some believe it could be poised for some upside.
Credit markets are breathing a sigh of relief after inflation data showed price pressures are cooling broadly, but a weakening economy poses fresh risks to corporate debt.
Goldman Sachs Group Inc. and Wells Fargo & Co. are joining rival JPMorgan Chase & Co. in the tapping the US investment-grade bond market after reporting second-quarter earnings.
Yield-hungry insurance firms are adopting an unconventional strategy: they’re skipping mortgage-backed bonds and buying the underlying whole loans outright.
It’s been clear since the fall of 2022 that the housing market needed lower interest rates to fix many of its problems including a lack of affordability for buyers, the mortgage rate lock-in dynamic for homeowners, and reduced activity for companies ranging from Home Depot Inc. and Lowe’s Cos. to suppliers of building materials.
Softening inflation supports the potential for a Federal Reserve interest rate cut in coming months, but there are complexities below the surface.
BlackRock Inc. hauled in $51 billion of client cash to its long-term investment funds in the second quarter, pushing the world’s largest money manager to a record $10.6 trillion of assets.
As we survey the economic landscape, we are reminded of Otis Redding’s classic hit, which is all about patience. “Looks like nothing’s gonna change, everything still remains the same.”
More inflows into active bond ETFs during the month of June is following the overall trend of higher inflows since the start of the year.
Net interest income helped big banks, which begin reporting second-quarter earnings July 12, but there's concern about how long it can keep going.
The second half narrative remains dominated by the path of interest rates, inflation, and the looming election.
Comparing public fixed income and private credit markets involves weighing factors related to liquidity, transparency, credit quality, risk premium, and opportunity costs.
Although the market is off to a rough start to the year, we think it should recover.
The UST yield curve has been inverted, but there is speculation about when it will “un-invert" and move out of negative territory.
With high yields and compelling opportunities, we think the muni market looks exceptionally attractive today.
Treasury yields tumbled after benign inflation data renewed confidence that the Federal Reserve will cut interest rates at least twice this year.
A strategic alignment within the workplace is an opportunity for financial advisors, employers and retirement savers seeking financial planning advice. See Kevin Murphy’s views on emerging trends in workplace savings.
Explore the complexities of the high-yield market through comprehensive insights from our experts.
Municipal bonds posted their strongest June performance since 2019. The asset class outperformed amid improving seasonal supply-and-demand dynamics. Looking ahead, July has historically been the strongest performing month of the year.
The expectation of rate cuts is not only fueling news-sensitive trades in emerging markets equities, but also in bonds.
Investors continue to pile into bond funds, looking to add yield now before the Federal Reserve starts instituting rate cuts.
While the temperatures were rising, the U.S. stock market continued its climb higher as well. The S&P 500 returned 3.5% and Emerging Market stocks delivered an impressive 3.9%. Bonds also returned positively in June.
On July 1st, Innovator is expanding the world’s first and largest suite of 100% Buffer ETFs with the launch of three new ETFs providing upside to U.S. equities with built-in 100% downside protection over 6-month, 1-year, and 2-year outcome periods.
With markets at all-time highs, Innovator’s 100% Buffer ETF suite could be the ideal solution for investors to move sidelined cash into U.S. equities with 100% downside protection and tax alpha over bonds and cash.
Additionally, short-term yields continue to hover near their highest levels since 2007, which continue to generate the highest caps we’ve seen since then. Now may be the time to take advantage of these historically high caps before they disappear.
In this product spotlight happening on July 9th at 12:30 pm ET, Innovator’s Chief Investment Officer Graham Day, CFA will unpack the industry’s first and largest suite of 100% Buffer ETFs.
It’s inevitable. A recession is coming. Whether it gets here next month, next quarter, next year, or next decade will be continuously debated until it arrives. Yet, one thing that everyone will agree on is that we will have another recession eventually.
Last week we had our quarterly live call for Yield Shark subscribers. We had some great conversations over the course of the hour. One of the major topics that came up was what will happen through the end of the year. Will we see a correction or a rotation? If so, when will this happen? And most important, how can we prepare?
Investors may want to opt for a middle-ground solution for yield and rate risk with intermediate bond funds.
The bond trade that some of Wall Street’s biggest banks say will dominate the rest of 2024 is gaining steam before a crucial inflation reading that will help seal the wager’s fate.
New British Prime Minister Keir Starmer promised a government of “stability and moderation” after leading his Labour Party to a landslide election victory that ended 14 years of Conservative rule that became characterized by turmoil and infighting.
US Treasuries gained, pushing yields lower, after a mixed report on the US labor market left traders holding tight to bets that Federal Reserve officials will lower interest rates this year.
