BofA Upgrades Coinbase to Buy Amid Broader Market Moves
Originally Published 3 days ago — by CNBC
Invesco supports a fixed income investment strategy as investors seek non-U.S. safe havens amid global market uncertainties.
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Fixed Income
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Navigating Market Highs: Strategies to Manage Risk and Uncertainty
Originally Published 3 months ago — by Barron's
With the S&P 500 and Nasdaq reaching record highs following a Fed rate cut, financial advisors recommend de-risking portfolios by reducing large-cap equity exposure, increasing allocations in small- and mid-cap stocks, international markets, and short-term Treasuries, while also adding inflation hedges like TIPS, real assets, and gold to mitigate economic uncertainties.
Sonal Desai Warns Investors About Unrealistic Expectations in Bonds
Originally Published 5 months ago — by MarketWatch
Sonal Desai, CIO of Franklin Templeton Fixed Income, warns that investors have unrealistic expectations for bonds, emphasizing that fixed income should provide boring, stable returns rather than equity-like performance, and advises focusing on shorter durations and managing risk amid current market conditions.
Earning Over 7% Yields from Dividends
Originally Published 7 months ago — by Seeking Alpha
The article emphasizes the importance of focusing on steady dividends and fixed-income investments with yields over 7%, advocating for patience and strategic planning in investing, similar to playing golf against the environment, to achieve reliable total returns and financial stability.
BlackRock Assets Soar to Record $10.6 Trillion on ETF Surge
Originally Published 1 year ago — by Yahoo Finance
BlackRock Inc. reached a record $10.6 trillion in assets, driven by significant inflows into ETFs and fixed-income funds. The firm saw $51 billion in client cash added to long-term investment funds in Q2, despite some large redemptions. BlackRock's diversified growth includes private markets and a recent acquisition of Global Infrastructure Partners, enhancing its position in infrastructure investments. The company's adjusted net income per share rose 12% from the previous year, surpassing Wall Street estimates.
"Seizing the Opportunity: High-Yield CD Rates Still Available"
Originally Published 2 years ago — by MarketWatch
Financial adviser Jeremy Keil is struggling to convince clients to lock into long-term CD rates at 5% as economic indicators point to a drop in interest rates. Despite the potential for rates to decrease, investors are still pouring money into fixed-income products, with CDs offering the highest rates for longer terms. Experts advise considering early withdrawal penalties, promotional rates, and laddering strategies when investing in CDs to navigate potential rate fluctuations.
Exploring Alternatives: Diversifying Investments for Cautious Investors
Originally Published 2 years ago — by CNBC
Cautious investors looking for stability and income may want to consider active management and fixed income strategies instead of relying solely on high-yield savings accounts. According to SPDR Exchange Traded Funds' Matthew Bartolini, active fixed income within ETFs can provide consistent performance, improved tax efficiencies, and better forward-looking returns. However, Bartolini warns that higher returns come with higher volatility, and cash carries its own set of risks, such as reinvestment risk. Dan Egan of Betterment also highlights the challenge of convincing investors to move away from cash, given the perceived safety of FDIC-insured accounts.
Investment Titans Seize Opportunity in Bond-Market Crash
Originally Published 2 years ago — by Markets Insider
Bond prices have experienced a significant slump since the start of the pandemic, but there are signs of a comeback in recent weeks. US Treasury prices have staged a mini-comeback, and benchmark 10-year yields have cooled off after reaching a 16-year high. Investors, including Warren Buffett and Stanley Druckenmiller, have shown interest in shorter-duration bills, indicating a potential end to the bond market rout. The Federal Reserve's indication of holding rates high until 2024 and concerns about a potential US recession and geopolitical volatility have contributed to the appeal of bond prices.
The Underrated Potential of Active Fixed Income ETFs, According to BlackRock's Rick Rieder
Originally Published 2 years ago — by CNBC
BlackRock's Chief Investment Officer of Fixed Income, Rick Rieder, believes that investors underestimate the potential of actively managed fixed income exchange-traded funds (ETFs). Rieder highlighted the success of BlackRock's Flexible Income ETF (BINC), which has outperformed its peers by capitalizing on current market opportunities. BINC's allocations are based on the attractiveness of different markets, with a focus on non-U.S. credit, U.S. high yield credit, and U.S. investment grade credit. Rieder emphasized the advantage of active management in generating higher yields and managing volatility effectively. The fund has benefited from opportunities overseas, particularly in Europe, due to favorable currency swap rates and a stronger dollar.
"Insights from BlackRock's CIO of Global Fixed Income and iShares Head on ETF Edge"
Originally Published 2 years ago — by CNBC
CNBC's ETF Edge, hosted by Bob Pisani, focuses on ETFs, the fastest-growing trend in investing. In this episode, BlackRock's CIO of Global Fixed Income joins the panel to provide educational and actionable advice for building a strong portfolio.
Norway's Wealth Fund Suffers $34 Billion Loss in Q3
Originally Published 2 years ago — by Reuters.com
Norway's $1.4 trillion sovereign wealth fund, the world's largest, reported a loss of $34 billion in the third quarter due to drops in the value of equities and bonds. The fund's return on investment was -2.1%, with equities, fixed income, and real estate assets all experiencing losses. The decline may be attributed to rising interest rates. The fund expressed concern about the concentration of growth in a few large U.S. tech companies. It also has minimal exposure to Israel and is monitoring the situation in the region.
Bank of America Introduces High-Yield Bond and Raises Dividend
Originally Published 2 years ago — by Seeking Alpha
Bank of America is set to issue a 10-year corporate note with a 6.55% coupon rate, offering a higher yield than CDs or newly issued debt from other banks. Despite facing challenges related to the interest rate environment, the bank's net interest income has risen above pre-pandemic levels. While total deposits have declined, the bank's increased borrowings have not affected its shareholder equity. Bank of America also has healthy financial ratios and its 6.55% bond is yielding at a comparable rate to its fixed rate preferred shares. However, investors should be aware of the call risk associated with the bonds.
Record Outflows Hit Investment Grade ETFs
Originally Published 2 years ago — by Financial Times
Investment grade corporate bond exchange traded funds (ETFs) experienced the second-highest monthly outflows on record in September, with $4.1 billion being withdrawn. The selling was concentrated in US-listed vehicles, although Europe-listed counterparts also suffered outflows of $0.6 billion. However, investors poured $35.1 billion into US equity ETFs, more than three times the amount registered in August. This influx of funds was essentially directed into many of the same companies that issued the investment grade credit being sold. Government bond ETFs, on the other hand, attracted $16.9 billion in inflows. The behavior of fixed income ETF investment is becoming more granular, with differing expectations in different markets.
Market Rally: Stocks Surge and Oil Prices Soar as Traders Analyze Federal Reserve Statements
Originally Published 2 years ago — by Yahoo Finance
Stocks rose as remarks from Federal Reserve officials suggested a cautious approach to rate hikes, boosting investor confidence. Oil prices climbed following an attack by Hamas on Israel, raising concerns about a wider conflict. Energy companies led gains in the S&P 500, while defense companies also rallied. Israeli companies Teva Pharmaceutical Industries and Check Point Software Technologies slipped in US trading. Amid ongoing geopolitical concerns and moderating global economic growth, investors are advised to consider buying high-quality bonds in the 5-10-year maturity range. The next risk to US stocks could come from fiscal policy constraints, according to Morgan Stanley's Michael Wilson.
Rising Treasury Yields: A Game-Changing Opportunity for Fixed-Income Investments
Originally Published 2 years ago — by MarketWatch
As Treasury yields continue to climb, financial experts suggest that investors can navigate the situation by increasing their exposure to longer-term Treasurys and other fixed income options. High-yield savings accounts, certificates of deposit, and money market-mutual funds have become attractive ways to earn rewards for parking cash, with rates in the 4% to 5% range. While the rise in yields has caused anxiety and impacted the stock market, experts believe that buying longer-term Treasurys can still be a viable option, provided investors understand the risks and rewards associated with bonds. This presents an attractive opportunity for fixed income investments, with rates that haven't been seen in a long time. However, caution is advised as bond prices decrease and yields increase when interest rates rise.