Corporate Credit

Unlike most of the rest of the world, I will attempt to minimize all there is to say about the beginning of the next 4 years, as the persistent yack and what to make of it reverberates in all corners of the financial globe.

A holistic approach may help insurance investors navigate an expansive opportunity set.

February’s market turbulence saw investors pivot toward defensive strategies as policy uncertainty intensified, driving a broad market rotation from mega-cap tech stocks to bonds, gold, and international equities.

Should you avoid lower-rated, riskier investments like high-yield corporate bonds or bank loans? Not necessarily, but you should understand the risks.

In the report, John Kerschner, Head of US Securitized Products & Portfolio Manager, and John Lloyd, Lead for the Multi-Sector Credit Strategies & Portfolio Manager, review the best-performing U.S. fixed income sectors of 2024 – what worked, what didn’t, and what it means for investors going forward.

We recently sat down with Justin Owens, our senior director and co-head of strategic asset allocation, to discuss the next phase of liability-driven investing (LDI) and the key trends driving this evolution. Below is a recap of our conversation.

Investors should not be overly distracted by the recent spate of political headlines and social media updates.

When constructing a target-date fund (TDF) glide path, providers have many decisions to make, such as what asset classes to include, when to include them, and how much to allocate to each.

With our most reliable valuation measures more extreme than both the 1929 and 2000 market peaks, we continue to believe that the stock market is tracing out the extended peak of the third great speculative bubble in U.S. history.

Attractive yields and a broad opportunity set bolster active bond investments amid today’s uncertain macroeconomic and market outlook.

Taxable municipal bonds may be an attractive option for investors in lower tax brackets, but there are things investors should know before making a decision.

Chief Investment Officer of Global Asset Allocation, Anwiti Bahuguna, Ph.D., outlines the investment themes and return expectations from our new 10-year outlook.

Long maturity treasuries can provide downside protection to offset equity risk, in our view.

Rising inflation, the potential added pressure from tariffs, and ongoing volatility create a strong backdrop for gold appreciation this year.

“Know what you own” is one of the many phrases we use to help describe and define fixed income, the components of bonds, and the characteristics that affect an investor.

Private credit has been one of the most talked-about segments in fixed income markets over the last few years.

There's plenty of uncertainty due to the threat of tariffs, but to counter volatility, market experts are recommending bonds.

Building a bond portfolio these days isn’t easy. Interest rates have been volatile. Credit spreads are tight. And sweeping change in US fiscal, trade, and regulatory policy is underway. We think securitized assets deserve a closer look.

At the same time, the Fed has mostly ignored the impact of easy financial conditions—the combination of stock, bond, and credit conditions—offsetting increases in interest rates by bolstering wealth and confidence.

Recent developments may just offer advisors and investors fresh pathways with which to attain higher yield in 2025.

As the sequel unfolds, particular industry sectors in affected countries are likely to be more impacted. Global Head of Credit Research Mike Talaga, Head of EMEA Credit Research James Maxwell, and Client Portfolio Manager Celia Soares discuss the implications for credit investors.

Municipal bonds were a hot topic at last week’s VettaFi Fixed Income Symposium — more than I expected them to be.

Alex Mackey of MFS delved into the active bond strategies underpinning MFSB and MFSM in the recent Q1 2025 Fixed Income Symposium.

Some allocators may focus their search efforts on corporate credit segments or simply a portfolio that can opportunistically trade across fixed income sectors.

In today’s era of automation, some situations demand a more active approach. Municipal bond investing is one.

Raymond James CIO Larry Adam looks at how the proposed tariffs may impact the economy and financial markets.

In a first quarter 2025 asset allocation report, Confluence expects resilient economic growth in the short term.

We analyze the impact of U.S. tariff proposals on markets and how investors can manage their portfolios accordingly.

The equity market appears to be showing signs of broadening beyond technology.

Stocks rallied in early 2025 as market leadership shifted, with Large Cap Value outperforming growth stocks, while a major AI development from China triggered a sell-off in U.S. technology stocks, raising concerns about the future of AI leadership and high-end chip demand. For investors the implications are more significant for fixed income portfolios, while equities should continue to do well as long as the labor market holds up.

When constructing a portfolio, investors who are seeking income have a range of options to choose from.

The evolving high-yield markets make the case for a global, multi-sector approach to generating income.

The fourth quarter was particularly volatile in fixed income markets, with U.S. government bond yields surging on worries over the rising fiscal deficit and the potential for inflation to reaccelerate.

The higher yields they currently offer can be a benefit for income-oriented investors, but those yields reflect the additional risks they face.

You’ve likely heard the saying “when the going gets tough, the tough get going.” A similar principle can apply to investing: “when the going gets tough, stay in the market.”

Doug Drabik discusses fixed income market conditions and offers insight for bond investors.

While planning for a CMA (Capital Market Assumptions) at the close of the year—and in the wake of an unexpected U.S. election result—it’s tempting to adopt a short-term perspective, focusing on the uncertainties and anxieties generated by President-elect Trump’s policies and their potentially disruptive impact on the economy and the market.

Four strategies for navigating crosswinds in the municipal bond market.

Bonds look attractive again after the most recent rise in interest rates. Markets are likely to continue to overreact to every new employment report and inflation reading, keeping interest rate volatility elevated as yields dance up and down with each data point.

For stocks, Christmas came with a 'Santa Clause' rally soon after the election. Since then, there's been a correction in US markets.

As growth extends to more regions, we see expanding opportunities across countries and assets.

When investors have been looking to allocate funds within the U.S. fixed income markets, credit has seemingly been viewed as being perhaps too “rich,” or expensive, in relative terms.

Investors, many of whom were worried about stock valuations before the election, have much to consider heading into 2025. There seems reason for some exuberance—but a rational exuberance, based upon a plausible foundation of corporate and economic health.

The wildfires may affect some municipal bond issuers in the devastated areas, but the impact to other California bonds or to the broader muni market is likely limited.

New policies could disrupt markets, but high starting yields and strong demand for income should provide ballast.

Friday’s rip-roaring jobs report has pushed the betting markets to price in a single rate cut for the entire year of 2025.

Amid an unsettled global economic outlook and elevated equity valuations, bond markets present attractive yields and important diversification benefits.

Doug Drabik discusses fixed income market conditions and offers insight for bond investors.

Although we are loath to make predictions, conditions appear to be favorable for fixed income in the coming year, and we think investors should consider adjusting their allocations accordingly.

Nothing is more fundamental to the current health of the economy than jobs creation and income growth.

Uncertainty with regard to interest rate policy warrants an active management strategy inherent in the Vanguard Short Duration Bond ETF.

Active fixed income could stand out in 2025, with active offering a way to refresh bond portfolios and allocations.

The journey from niche asset to core allocation looks set to continue.

We are pro-risk, with the biggest overweight in U.S. stocks, yet eye three areas that could spur a view change.

US equities were up notably in 2024, due to a strong economy, accelerating earnings growth, US election results, and AI/mega-cap strength.

U.S. equities closed 2024 on top and U.S. growth took back leadership from U.S. value.

Our Cash Indicator methodology acts as a plan in case of an emergency. Investors should expect more equity market volatility ahead.