As Bond Yields Rise, Some Investors Fear Another False Dawn

Promising signs in the bond market, as yields are heading higher around the world, a move typically linked to rising expectations of economic growth and inflation. Source: The Wall Street Journal As the Federal Reserve’s policy-setting committee prepares to meet on Tuesday, one signal suggests that investors believe the economy, and financial markets, may be finding…

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Emerging Markets Corporate Bonds Look Good

Emerging market corporate bonds offer a reasonable prospect of both, risk and return. Source: Barrons Where can you get 5% annual returns and still sleep at night? Emerging market corporate bonds offer a reasonable prospect of both, according to Loomis Sayles. Acknowledging the risks — pressure on commodity prices, wobbly global growth, and rising U.S. interest…

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‘Spring Cleaning’ in the Credit Markets

Rating agencies downgrade companies from one category to another adding to volatility in trading levels. Source: Wall Street Journal Rating agency downgrades are helping shift the pricing dynamics across the U.S. corporate bond market. As credit raters drop their outlooks across the sector, the amount of additional yield that investors demand over super-safe Treasurys is rising…

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Corporate Bonds As A Risk Remedy

High-quality corporate bonds boast half the volatility of stocks, are relatively safe as defaults are rare, and offer attractive yields. Source: Barron’s Riskier investments had a good run for the past six weeks but seem to be running out of gas. By the end of last week, oil was lower, and stocks and high-yield bonds were…

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