Bond Insights
CONTENT WITH Bond Insights
Mind the Gap: Bond Yields Appear Set for a Rebound
Over the next few months, we see room for yields to move higher, especially if the inflation data come in stronger than anticipated.
The Strong Dollar: Can It Continue?
A trifecta of factors support the dollar, including the relatively strong performance of the U.S. economy, tightening monetary by the Federal Reserve, and safe-haven buying. These are likely to remain intact into 2023.
Bond Market Reset: What's Next?
Major central banks are hiking interest rates rapidly and shrinking their balance sheets in an effort to "normalize" policy. The question hanging over the market is, "What is a normal policy rate?"
4 Reasons to Be Cautious With High-Yield Bonds
Given that tighter financial conditions are on the horizon, high-yield bonds may not be as attractive as they have been over the past few years. We look at four factors that indicate it may be especially prudent to proceed with caution when it comes to high-yield bonds.
Opportunities Come Knocking in the Muni Market
With inflation at its highest point in decades and the Federal Reserve expected to continue to aggressively raise interest rates, municipal bonds may offer opportunities not seen in years.
8 Questions on the Bond Market and Rate Hikes
More interest rate hikes are likely this year as the Federal Reserve tries to curb inflation; here are answers to eight common questions on ways these hikes may affect the fixed income markets and how to navigate this higher-rate environment.
At Last—Income in the Fixed Income Market
The first quarter was brutal for fixed income investors, as bond prices fell and yields rose. However, the steep rise in yields should mean that income investors can finally earn relatively attractive yields in the bond market, after enduring nearly three years of near-zero interest rates.
Why to Consider Preferred Securities Now
Prices have fallen sharply, creating an opportunity for income-oriented investors who can ride out the volatility. Investors should understand the risks, however.
Muni Pension Risk? It’s in the Past for Now
Unfunded pension liabilities for state and local governments are in their best condition in nearly a decade, supporting the case that credit quality in the municipal bond market has improved.
Preferred Securities: Balancing Yield with Risk
Preferred securities’ higher yields may be appealing, but they almost always come with additional risks.
Thumbs up / down votes are submitted voluntarily by readers and are not meant to suggest the future performance or suitability of any account type, product or service for any particular reader and may not be representative of the experience of other readers. When displayed, thumbs up / down vote counts represent whether people found the content helpful or not helpful and are not intended as a testimonial. Any written feedback or comments collected on this page will not be published. Charles Schwab & Co., Inc. may in its sole discretion re-set the vote count to zero, remove votes appearing to be generated by robots or scripts, or remove the modules used to collect feedback and votes.