Friday, 21 October 2022 05:21

Fixed income: questions, questions

Written by
Rate this item
(1 Vote)

A, um, fixation, among investors this year: the performance of fixed income assets, according to Wells Fargo.

Wells Fargo published several reports on issues playing a role in the challenging environment today. The intent of the executive summary was to address heard often voiced by investors. Some of the top questions revolving around fixed income included:

  1. What is happening to bonds so far in 2022?
  2. Why continue to invest in bonds?
  3. Why is the Fed garnering so much attention this year?
  4. What should investors expect from the remaining three Fed meetings of this year?
  5. What does Fed quantitative tightening mean?
  6. What do you mean when you say, “financial conditions in the economy are tightening”?
  7. Should we be worried about liquidity in bond markets?

Equity and fixed income markets simultaneously endured negative returns in the first of the year – catching a number of investors off guard. While all major fixed indexes bounced back in July in light of receding yields, year to date, they remain negative.

Inflation? Yep; it’s stuck in gear; that is, elevated. Meantime, the broader economic environment – especially the labor market, has proved to be one tough cookie, according to

”Higher inflation and higher growth volatility are propelling us into a higher yield environment, marking a departure from the post-financial crisis era,” according to Whitney Watson, global head of Fixed Income Portfolio Management, Construction & Risk. “Ultimately, we think this presents opportunities in high-quality fixed income assets, such as investment grade corporate bonds and agency MBS.”

Contact Us



Subscribe to our daily newsletter

We use cookies to improve our website. By continuing to use this website, you are giving consent to cookies being used. More details…