The Federal Reserve (Fed) is almost certainly going to raise interest rates in December, but what’s less certain is what comes after that – will 2019 see three rate increases or four?
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Tax reform has incentivized companies to return their offshore cash to the U.S. This could create opportunities for U.S. investment grade bonds.
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In my recent blog on the impact of the tax reform, I explained why I believe the new tax law should be extremely supportive of the U.S. investment grade (IG) bond market, including provisions that could lead to reduced supply. Looking beyond IG, the news appears to look good for other fixed income sectors as well.
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Often investors become concerned about duration in a bond portfolio, believing that if interest rates rise, duration will increase the potential for losses.
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Despite the near non-stop drama of the legislative process, we ended December with the U.S. Tax Cut and Jobs Act of 2017 being signed into law. What does this mean for fixed income investors? In my opinion, the news is overwhelmingly positive for the U.S. investment grade market; here are four reasons why.
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For income-focused investors, yield remains incredibly elusive in most markets, with roughly 20% of global fixed income assets delivering negative yield. In Europe, that rises to about 40%.
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The Federal Open Market Committee (the Fed) is set to convene its final meeting for 2017. It promises to be the event the markets have been waiting for since 2008.
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