Displaying items by tag: fixed income

Coinbase Asset Management and Apollo have partnered to launch tokenized credit products, combining Apollo’s private credit expertise with Coinbase’s blockchain infrastructure to introduce new stablecoin-backed strategies in 2026. Their initiatives follow the GENIUS Act, which established the first U.S. federal framework for stablecoins and is expected to drive the market to $3 trillion by 2030. 

Meanwhile, fund managers such as Hamilton Lane and Laser Digital have begun tokenizing credit funds via KAIO, a protocol purpose-built for institutional-grade onchain assets, with over $200 million already tokenized. KAIO, backed by Nomura, recently integrated with the Sei blockchain to provide fast, compliant access to funds like Hamilton Lane’s senior credit platform and BlackRock’s ICS US Dollar Liquidity Fund. 

In a related move, Securitize announced plans to go public through a merger with Cantor Equity Partners II, valuing the company at $1.25 billion and positioning it at the forefront of a $19 trillion market for real-world asset tokenization.

Finsum: Demand for tokenized assets is rising sharply, with Broadridge reporting that while only 15% of asset managers currently offer tokenized funds, 41% plan to do so soon.

U.S. Treasury yields fell sharply on Thursday, with the 10-year yield dropping below 4% following a weaker-than-expected Philadelphia Fed survey showing deteriorating regional economic conditions. The 10-year Treasury yield declined over 7 basis points to 3.98%, while the 2-year yield dropped to 3.42% and the 30-year fell to 4.59%, marking their lowest levels in months. 

The decline came as stocks tumbled, led by bank shares, amid growing concern over bad loans, trade tensions, and the ongoing U.S. government shutdown. With the shutdown delaying key economic reports, investors are turning to Fed speeches for clues ahead of the October 28–29 FOMC meeting, where futures markets now overwhelmingly price in a 25-basis-point rate cut.

Federal Reserve officials offered conflicting views on how quickly to cut interest rates given a weakening labor market and geopolitical uncertainty. 

Finsum: Now could be the time to jump on treasuries as yields slump and prices are driven up on the uncertainty. 

As investors prepare for year-end taxes after a volatile 2025, many are exploring ways to reduce their tax burden through strategies like tax loss harvesting and structural portfolio adjustments. Active ETFs, according to T. Rowe Price’s Kevin Signorelli and Chris Murphy, can play a key role in minimizing tax impacts. 

ETFs inherently generate fewer taxable events than mutual funds due to their creation and redemption mechanism, which limits capital gains distributions. Active ETFs add further efficiency, often operating at lower costs while maintaining flexibility to manage holdings strategically. 

They also offer effective vehicles for tax loss harvesting, allowing investors to shift from underperforming funds into more promising active strategies, such as international or tech-focused ETFs. 

Finsum: As active ETFs continue to expand, they provide investors with more tools to optimize portfolios for both performance and tax efficiency.

Investor interest in international bonds has been accelerating, as July fund flows showed a marked uptick in overseas bond allocations, according to Morningstar data. This trend reflects a growing desire to diversify away from U.S. bond exposure, with Vanguard offering three compelling options for investors seeking global fixed income opportunities. 

A weaker dollar, pressured by expectations of falling rates, has further boosted the appeal of international assets, drawing more flows into global and emerging market bond funds. For those balancing domestic and global exposure, the Vanguard Total World Bond ETF (BNDW) offers nearly equal allocations between U.S. and international bonds at a minimal 0.05% expense ratio. 

Investors who prefer a pure international approach may turn to the Vanguard Total International Bond ETF (BNDX), which focuses on developed markets, or the Vanguard Emerging Markets Government Bond ETF (VWOB), which provides higher yields through EM sovereign debt. 

Finsum: Total bond funds present flexible avenues for enhancing portfolio diversification and capturing income beyond U.S. borders.

Bond markets have been volatile lately, but some multisector bond funds have managed to deliver stronger returns than the broader bond market. These funds diversify across different fixed-income sectors, such as government, corporate, high-yield, and foreign bonds. 

Over the past year, the category has returned 5.93%, better than the Morningstar U.S. Core Bond Index’s 5.66%, and it has also outperformed over three- and five-year periods. A screen for the best performers by one-, three-, and five-year results highlighted three actively managed funds: Axonic Strategic Income Fund (AXSIX), DoubleLine Flexible Income Fund (DFFLX), and NYLI MacKay Strategic Bond Fund (MSYEX). 

Each has topped peers recently, with returns ranging from about 7% to nearly 8% over the last year. 

Finsum: For investors looking to reduce volatility while maintaining competitive returns, these funds show the potential benefits of a multisector approach.