IN FOCUS: Fixed Income
In the unlikely world of rock-bottom Treasury rates, a debt-ceiling time bomb, a tarnished municipal bond market and recovering corporate balance sheets, what's an investor to do?
In the unlikely world of rock-bottom Treasury rates, a debt-ceiling time bomb, a tarnished municipal bond market and recovering corporate balance sheets, what's an investor to do?
Though diversity is important, seek an overweighting in corporate, municipal and emerging market bond funds.
U.S. Treasuries should bear the brunt of rising interest rates, so think TIPS and ultra-short funds.
ETFs broadly covering bonds in the major taxable and tax-exempt asset classes, plus exposure to convertible bonds that feature some of the upside of stocks, are an investor’s best option to deal with uncertainty.