Displaying items by tag: bonds

Few probably are pounding away for a repeat performance of the bond markets in the first half of the year. But an upbeat perspective among investors is warranted, according to corporate.vanguard.com. And, why, pre tell, is that? Bonds are on the precipice to dispense a spike in real income and restart their role of diversifying portfolios.

Even so, however, the road ahead is sprinkled with a plethora uncertainties and variables. The upshot: among other things, for another season, inflation seems bound to remain abnormally high.

At the same time, unlike the recent past, corporates, municipals, high yield, and emerging markets pose plenty of chances for growth.

Bloomberg Barclay’s US Aggregate Bond Index plunged 8.8% since January, according to fidelity.com. That was its steepest drop off in 40 years. What’s up? Investor trepidations over rising interest rates and the fear it could put a dent in the price tag on bonds. That usually translates into a drop in bond prices and rising bond yields.

However, it also could be where opportunity knocks. The Fed’s plan to revert rates to “more historically normal levels” could tee up a chance in bonds for may of those with an eye on income, principle protection and diversification in the second half of the year and more.

 

Published in Bonds: High Yield
Tuesday, 23 August 2022 02:17

BlackRock Furthers Fixed Income Innovation

BlackRock launched a new series of fixed-income ETFs which allow access to buy-write investments on bond securities. iShares 20+ Year Treasury Bond BuyWrite Strategy (TLTW), Shares High Yield Corporate Bond BuyWrite Strategy ETF (HYGW), and the iShares Investment Grade Corporate Bond BuyWrite Strategy ETF (Cboe: LQDW) are all different variations of the new options available to investors. BR says buy-write strategies have been available to equity ETFs for a long time, but have not infiltrated fixed income. These options will give more exposure to yield in what has been one of the most difficult times for fixed-income investment in decades. This just adds to BR’s legacy of innovation and creativity in bond market ETFs.


Finsum: This is an interesting idea, and maybe if inflation is cooling quicker than expected bonds are too cheap. 

 

Fixed Income ETF: Bonds, Total Market, ETF, Treasuries

Published in Bonds: Total Market
Friday, 19 August 2022 12:12

Fixed Income Launches During Goldilocks Moment

Fixed income investors might feel lost in the current environment, but with yields starting to generate real income and prices ultra-low it might be the perfect buying opportunity. A new series of bond ETFs centered around treasuries was launched to capitalize on this unique time in the bond market. Slope Capital LLC and Genoa Asset Management LLC launched 10-year (UTEN.O), two-year (UTWO.O), and three-month (TBIL.O) dropped ETFs that will hold the most recent current Treasuries in the respective categories. Managers of the funds say this is well crafted precise tool for the fixed income investors that need a product like this. It gives new potential to bond investors in a precise way to tailor portfolios. There has been a flood into fixed income products as of late and funds are launching rapidly in response and will continue over the next half-decade.


Finsum: These tools can be utilized for investors wanting bond exposure, but not wanting to deal with the task of trading in the treasuries market and constantly updating

Published in Bonds: Total Market

As the economy’s taken a wicked turn toward the dark side, the clamor for fixed income ETFs has parachuted, according to usnews.com.

Peng Cheng, JP Morgan strategist, explained that this includes retail investors, who hopped on the bandwagon last month, loading into credit ETFs like SPDR Bloomberg High Yield Bond ETF and the share iBoxx $ Inv Grade Corporate Bond ETF.

Earlier in the month, a new series of exchanged-traded funds launched, the US Benchmark Series. That will help ease they way for individual and institutional investors to trade the must updated individual benchmark U.S. Treasuries, which will shone a light on the maturing ETFs in the fixed income category, according to reuters.com. "This gives (investors) a tool to say, we really want to focus on how we execute our investment strategy, as opposed to how effectively we trade Treasury bonds," said F/m President Alex Morris.

 

Published in Bonds: Total Market
Tuesday, 16 August 2022 14:10

New Suite of ETFs Offer Single Treasury Exposure

A $4 billion investment advisor based in Washington, D.C. recently announced the launch of a new suite of US Treasury ETFs that will make it easier for investors to access the US Treasury market. F/m Investments' new US Benchmark Series will allow investors to own each “Benchmark” US Treasury in a single-security ETF. Each fund will hold the most current US Treasury security that corresponds to its stated tenor. The initial three ETFs are the US Treasury 10 Year ETF (UTEN), the US Treasury 2 Year ETF (UTWO), and the US Treasury 3 Month Bill ETF (TBIL). While Treasuries are very liquid securities, they can be hard to trade. This is especially true for investors who must roll them over frequently to maintain maturity. The new ETFs will hold each maturity's most current Treasuries. 


Finsum: A new suite of single bond ETFs will provide investors access to a maturity’s most current treasury.

Published in Bonds: Treasuries
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