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Matt Tucker, CFA

Matt is Head of the iShares Fixed Income Strategy team. He and his team focus on product strategy for iShares ETFs in North and Latin America. He has over fifteen years of experience in the fixed income markets and is a CFA charterholder. He writes about fixed income and ETF education.

Disclosure: The content Market Realist publishes should not be construed as investment advice, nor do the opinions expressed necessarily reflect the views of BlackRock.

More From Matt Tucker, CFA

  • uploads///AGG Gives You Exposure to Investment Grade Bonds
    Macroeconomic Analysis

    Why Your Portfolio Needs More Than Just Equities

    You know your portfolio needs more than just equities. So what can complement equities in your portfolio? How many high-yield bonds you own depends on your risk appetite.

    By Matt Tucker, CFA
  • uploads///Inflation Has Been Dipping Over the Last Few Months
    Macroeconomic Analysis

    Why Robust Growth Could Lead to an Early Rate Hike

    Robust growth could lead to an early rate hike—despite low inflation. Low inflation rates are one of the reasons why Treasury yields have remained low.

    By Matt Tucker, CFA
  • uploads///AGGSecExposure
    Financials

    Clearing up a common misconception about bond ETF management

    A bond ETF is managed by a human (sometimes several). A common misconception about bond ETFs is that they simply hold all the securities in the index they track.

    By Matt Tucker, CFA
  • Financials

    Labor Day barbecues, beaches, and bonds: Why it’s all about balance

    If you’re Matt Tucker, everything reminds you of investing, even the last barbecue of the summer. Read on to discover how your bond portfolio may very well resemble a Labor Day mixed grill.

    By Matt Tucker, CFA
  • uploads///Inflation has dipped mainly because of the dip in oil prices
    Macroeconomic Analysis

    The Tails Of The Yield Curve May Provide Value

    The tails of the yield curve may provide more value due to low inflation.

    By Matt Tucker, CFA
  • Financials

    4 ways to increase your corporate bond exposure

    Record low U.S. Treasury rates continue to push investors to find yield elsewhere, and it seems that corporations are rushing to meet the demand. Matt Tucker explains.

    By Matt Tucker, CFA
  • Financials

    Unique opportunities for investors given new monetary policy outlook

    I’ve discussed on The Blog how an investor can think of the federal funds rate and QE as a gas pedal. Sometimes it’s good to ease off a bit to limit the pace of acceleration.

    By Matt Tucker, CFA
  • uploads/// Japan Bond Yield
    Company & Industry Overviews

    Hunting for Yield: Looking beyond Japan

    Japan is the largest accessible bond market in Asia (source: Barclays Multiverse Index as of 7/29/16), but the problem is the yields for many local bonds are negative.

    By Matt Tucker, CFA
  • uploads/// US Bond Yields Higher
    Company & Industry Overviews

    The Intense Search for Yield Ends in the United States

    You historically can’t get a high level of yield from relatively safe fixed income investments.

    By Matt Tucker, CFA
  • uploads///Unemployment rate continues to fall
    Macroeconomic Analysis

    Why The Dip In The Unemployment Rate Is Insufficient 

    Despite the dip in the unemployment rate, interest rates remain close to zero.

    By Matt Tucker, CFA
  • Financials

    Why investors are turning to corporate bond ETFs

    Investors seeking exposure to investment grade or high yield corporate debt have increasingly been using fixed income ETFs.

    By Matt Tucker, CFA
  • Financials

    Why debt levels are high despite deleveraging efforts

    As my colleague Russ Koesterich mentions in a recent Blog post, deleveraging has taken place in the financial sector, but other segments have continued to grow and issue more debt.

    By Matt Tucker, CFA
  • Financials

    Assessing high yield bonds as part of your fixed income portfolio

    The decadent offering of barbecued ribs at a weekend party is similar to that of high yield fixed income investments. By taking on greater risk of spilling sauce on your shirt you have the experience of a true summertime staple…

    By Matt Tucker, CFA
  • Financials

    Must-read: Use emerging market bonds for higher yield potential

    For those who want a little more adventure on their menu, there’s always the option of adding some unique flavors like spicy kebabs. This is the equivalent of adding some emerging markets fixed income to your bond portfolio.

    By Matt Tucker, CFA
  • uploads///SHY price vs NAV
    Macroeconomic Analysis

    When The Net Asset Value Of A Bond ETF Differs From Market Price

    The Intraday Indicative Value gives us a more real-time value than the bond ETF’s NAV. It’s considered an implied value of an ETF.

    By Matt Tucker, CFA
  • uploads///The federal funds rate has remained low
    Macroeconomic Analysis

    The Interest Rate Timeline Has Shifted

    The graph above shows the history of the federal funds rate. The federal funds rate is a tool that the Fed uses to control the interest rate.

    By Matt Tucker, CFA
  • uploads///High Yield Bonds Give You Equity Like Exposure
    Macroeconomic Analysis

    How INC Can Help Balance a Fixed-Income Portfolio

    The correlation between the S&P 500 Index and Treasuries has been -0.55 over the last five years.

    By Matt Tucker, CFA
  • uploads///High yield bonds are not good diversifiers
    Macroeconomic Analysis

    Why Junk Bonds Are Not Good Diversifiers

    High yield bonds show a moderate correlation with investment grade corporate bonds. As a result, junk bonds are not good diversifiers.

    By Matt Tucker, CFA
  • uploads///Federal funds rate has remained low
    Macroeconomic Analysis

    Why Low Interest Rates Have Affected Asset Prices And Yields

    Low interest rates have supported the economy, but another side effect of low interest rates is that it discourages household savings.

    By Matt Tucker, CFA
  • Financials

    Must-read advice for investors considering TIPS

    From TIPS to “phantom income” to varying distributions — Matt Tucker is here to explain what they are and how they are related.

    By Matt Tucker, CFA
  • uploads///Risk return metric for bonds
    Macroeconomic Analysis

    How Various Asset Classes Compare Using The Risk-Return Metric

    The risk-return metric for ten-year Treasuries (IEF) are lowest, but also the safest, with a paltry 1.3% volatility and with an average yield of 4.1%.

    By Matt Tucker, CFA
  • uploads///highyield
    Miscellaneous

    High-Yield Bonds Are Turning Out to Be the Real Winners

    High-yield bonds gained popularity due to higher yields compared to Treasury bonds, whose yields were being pushed down by the Fed’s interest rate policy.

    By Matt Tucker, CFA
  • uploads///fedvolatility
    Macroeconomic Analysis

    Divided Opinions about the Fed’s Rate Hike Procrastination

    The December 2015 rate hike was the first since the 2008 global meltdown. Now the Fed is hinting at the first rate hike of the year to come in December 2016.

    By Matt Tucker, CFA
  • uploads///Junk bond yields and the SP  are inversely related
    Financials

    Connection Between Equities And High Yield Bonds

    Equities and high yield bonds perform well when the economy is improving, and both underperform when the economy is slumping.

    By Matt Tucker, CFA
  • Financials

    Must-know: Why corporate debt offerings are increasing

    Over the past six quarters, corporate debt has been growing at an average annualized rate of around 9.5%, which exceeds the pre-financial crisis average of 7.5%.

    By Matt Tucker, CFA
  • Financials

    What the demand and supply imbalance in bond markets implies for investors

    The demand we have seen for fixed income this year is a significant contributor to lower interest rates. The demand is coming from retail investors through mutual funds and ETFs, as well as institutions and government bodies like the Fed.

    By Matt Tucker, CFA
  • Financials

    Incorporating investment-grade bonds in your fixed income portfolio

    Just like a prime, choice, or select cut of beef, there are investment grade bonds that are rated according to credit quality. Investment grade describes bonds that are “AAA” or “AA” (high credit quality) and “A” to “BBB” (medium credit quality).

    By Matt Tucker, CFA
  • Financials

    Recommendation: Consider hedging against rising interest rates

    As the Fed continues to reduce its Quantitative Easing program, Matt Tucker explores ways to attempt to hedge against rising interest rates in your bond portfolio.

    By Matt Tucker, CFA
  • Interest rate hedging: The must-know key to managing duration
    Financials

    Interest rate hedging: The must-know key to managing duration

    So how can an investor manage duration, beyond investing solely in short duration bonds? An alternative approach is to utilize interest rate hedging.

    By Matt Tucker, CFA
  • Financials

    Must-read: Why high yield bond funds experienced a major sell-off

    From June 30th to August 6th, high yield bond ETFs (HYG) experienced $3.7 billion of redemptions, and this included shorter maturity high yield funds which had been impervious to previous periods of outflows.

    By Matt Tucker, CFA
  • Financials

    High yield bond sell-off: A must-know investor outlook

    So what does this mean for investors? We have been neutral on high yield (HYG) for the past few months as it has offered more income potential than other asset classes.

    By Matt Tucker, CFA
  • Financials

    The must-know basics of fixed income investing

    A lot of investors evaluate fixed income sectors by looking at the level of yield they might receive for a given level of risk. We continue to explore how investors consider interest rate risk and portfolio positioning in the current environment.

    By Matt Tucker, CFA
  • Financials

    The must-know risk-return trade-off in fixed income investing

    As we know from the risk-return trade-off, the higher the level of credit risk an issue has the higher the yield will likely be. Credit risk is often measured with a metric called Option Adjusted Spread or OAS.

    By Matt Tucker, CFA
  • Financials

    Emerging market bonds: The pros and cons of investing

    EM spreads have tightened some as well, but not nearly as much. As a result, the yields on EM debt appear to be unusually wide given the credit quality of the issuers.

    By Matt Tucker, CFA
  • uploads///bond countries
    Miscellaneous

    Will Bonds Continue to Outperform?

    Bonds held a lot of promise compared to stocks on September 26, 2016, due to the continuous influx of funds from stocks to bonds.

    By Matt Tucker, CFA
  • uploads///treasury
    Miscellaneous

    Why Did Treasury Bonds Record a Fall in Yield?

    The yield on US ten-year Treasury securities fell below the 1.6% mark for the first time on September 26, 2016 due to a rise in demand.

    By Matt Tucker, CFA
  • uploads///investgradcorpbond
    Miscellaneous

    Why the Spike in Demand for Investment-Grade Corporate Bonds?

    The demand for US investment-grade corporate bonds was driven by higher yields generated by bonds in the midst of low interest rates.

    By Matt Tucker, CFA
  • uploads///tips
    Miscellaneous

    Will Treasury Inflation-Protected Securities Be a Game-Changer?

    According to Bloomberg, Treasury Inflation-Protected Securities (or TIPS) have generated a year-to-date return of 6.3% compared to 4.7% by the broad Treasury market.

    By Matt Tucker, CFA
  • uploads///emergmkt
    Miscellaneous

    The Rally in Emerging Market Debt

    Emerging markets’ nonfinancial corporate debt breached the $26 trillion mark in the first half of 2016.

    By Matt Tucker, CFA
  • uploads/// Long maturity bonds
    Company & Industry Overviews

    Limited Options for Yield-Starved Investors

    What does all this tell us? First off, there just aren’t as many opportunities for U.S. investors in international developed bond markets.

    By Matt Tucker, CFA
  • uploads///A BLR
    Company & Industry Overviews

    Diminishing Opportunities in Asia: What You Need to Know

    The balance of countries in Asia present more interesting opportunities. To better focus our discussion, I’ll concentrate on investment grade markets.

    By Matt Tucker, CFA
  • uploads/// China bond market
    Company & Industry Overviews

    Regulatory Hurdles Affecting Chinese and Indian Bond Markets

    As the intensifying search for yield goes international, Matt examines and shares his thoughts on the different Asian bond markets.

    By Matt Tucker, CFA
  • uploads///  yr bond yield
    Company & Industry Overviews

    Why Bargain Hunting in Continental Europe Yields No Results

    Given the negative yields in Continental Europe, it would be wise to combine developed markets with good economic fundamentals.

    By Matt Tucker, CFA
  • uploads///A BLR
    Company & Industry Overviews

    Negative Rates Rules in Continental Europe

    The lackluster economic growth and low inflation in Europe have forced the European Central Bank to unleash measures such as quantitative easing.

    By Matt Tucker, CFA
  • uploads/// UK Yield
    Company & Industry Overviews

    Many Parallels in Developed Countries’ Bond Markets

    In the first week of August 2016, the BOE (Bank of England) cut its key interest rate to a record low of 0.25% from 0.5%, the first cut in seven years.

    By Matt Tucker, CFA
  • uploads///Interest Rate Risk and Credit Risk Have a Negative Correlation
    Macroeconomic Analysis

    Credit Risk and Interest Rate Risk Have a Negative Correlation

    Credit markets tend to improve when the economy is improving. The possibility of a default on corporate bonds (LQD) drops, thus causing their yields to fall.

    By Matt Tucker, CFA
  • uploads///Expanding Credit Spreads Indicate That the US Economy Is Slowing Down
    Macroeconomic Analysis

    What Risks Are Involved in Bonds?

    Since Treasuries (TLH) do not have any credit risk, the yield on them is the reward you get for taking on interest rate risks.

    By Matt Tucker, CFA
  • uploads///Maturity distribution of IYLD
    Company & Industry Overviews

    IYLD: A Diversified Fixed Income Portfolio

    Within fixed income securities, there are two main types of risks: interest rate risk and credit risk.

    By Matt Tucker, CFA
  • uploads///IYLD Holdings
    Macroeconomic Analysis

    Find Out Which ETF Invests in Other ETFs

    The main goal of the iShares Multi-Asset Income ETF is to deliver high current income, while also providing diversification benefits and maintaining long-term capital appreciation.

    By Matt Tucker, CFA
  • uploads///Inflation rates and TIPS Yields are Inversely Related
    Macroeconomic Analysis

    The Impact of Rising Interest Rates on TIPS

    With interest rates likely to go up by the end of the year, TIPS with shorter maturities look more attractive.

    By Matt Tucker, CFA
  • uploads///TIPS usually yield less than Treasuries
    Macroeconomic Analysis

    Comparing Treasury Inflation-Protected Securities and Treasuries

    Yields on TIPS remain close to 0%, making them unattractive for some. However, considering that inflation rates could go up and remain there, these securities look attractive.

    By Matt Tucker, CFA
  • uploads///TIP Has Seen an Increase in Fund Flows in
    Macroeconomic Analysis

    Why Inflation-Protected Securities Are in Vogue

    If the recent economic improvement in Europe is sustainable, it could lead to a higher demand for American goods in Europe. This could also contribute to higher inflation in the US.

    By Matt Tucker, CFA
  • uploads///The Yield Curve Tends to Flatten When the Fed Funds Rate Rises
    Macroeconomic Analysis

    An Interest Rate Hike Could Cause a Flatter Yield Curve

    The rate hike could cause a flatter yield curve.

    By Matt Tucker, CFA
  • uploads///International Government Bond Yields Are Very Low
    Macroeconomic Analysis

    Why Global Demand for US Treasuries Could Keep Yields Low

    Global demand for US Treasuries could persist for the rest of the year. Major developed markets (EFA) outside the US have seen poor growth or recession.

    By Matt Tucker, CFA
  • uploads///Junk bond yields increased in
    Macroeconomic Analysis

    Why Credit Spreads Expanded Last Year

    The global slowdown and the slump in oil (USO) prices caused credit spreads between junk bonds and Treasuries to increase.

    By Matt Tucker, CFA
  • uploads///Treasury yields dipped in
    Macroeconomic Analysis

    Why US Treasury Yields Stayed Low In 2014

    US Treasury yields have stayed low due to soft global growth. Yields have been driven down since the financial crisis due to the Fed’s bond buying program.

    By Matt Tucker, CFA
  • uploads///High yield bonds on the risk continuum
    Macroeconomic Analysis

    Where Are High Yield Bonds On The Risk Continuum?

    High yield bonds (HYG), which are usually issued by mid- and small-cap companies, are considered riskier than investment grade corporate bonds.

    By Matt Tucker, CFA
  • uploads///adbcdfbec
    Macroeconomic Analysis

    Junk Bond Yields Are High, But Beware Of The Caveat.

    The key point is that junk bond yields are high for a reason. Investors take on high credit risk in order to procure high yield.

    By Matt Tucker, CFA
  • uploads///High yield bond volume has increased
    Macroeconomic Analysis

    High Yield Bond Funds: The Liquid Way To Access Junk Bonds

    Relatively speaking, the high yield bond funds are quite popular within the fixed-income ETF world.

    By Matt Tucker, CFA
  • uploads///High yield bonds have seen massive inflows since the financial crisis
    Macroeconomic Analysis

    The Link Between Oil Prices And High Yield Bond Yields

    High yield bond fund HYG saw inflows peak at close to $4.5 billion in 2012. High yield bond fund flows have turned negative since.

    By Matt Tucker, CFA
  • uploads///High yield bonds are not good diversifiers
    Macroeconomic Analysis

    Why High Yield Bonds Are Not Good Diversifiers

    High yield bonds correlate highly with equities and moderately with investment grade corporate bonds. Hence, high yield bonds are not good diversifiers.

    By Matt Tucker, CFA
  • uploads///Junk bond yields have increased lately
    Macroeconomic Analysis

    When High Yield Bonds Perform Well, And When They Don’t

    High yield bonds perform well when the economy is improving.

    By Matt Tucker, CFA
  • uploads///High yield bonds have seen massive inflows since the financial crisis
    Macroeconomic Analysis

    The Tables Have Turned For Fund Flows In High Yield Bonds

    Fund flows in high yield bonds have turned negative.

    By Matt Tucker, CFA
  • uploads///Barclays US Aggregate Bond Index vs AGG NAV per unit
    Macroeconomic Analysis

    Calculating A Bond ETF’s Underlying Value

    The calculation of a bond ETF’s underlying value is going to be less precise than a stock ETF’s underlying value.

    By Matt Tucker, CFA
  • uploads///SPTR index level vs IVV NAV per unit
    Macroeconomic Analysis

    Determining The Underlying Value Of Equity And Bond ETFs

    An ETF’s underlying value is calculated using the NAV. This is the sum total of all the holdings in an ETF divided by the number of its shares outstanding.

    By Matt Tucker, CFA
  • uploads///Number of holdings in PowerShares Fundamental High Yield Corporate ETF vs index
    Macroeconomic Analysis

    The Management Of Bond ETFs Versus Equity ETFs

    The management of bond ETFs is a more complex task that involves sampling representative bonds from a given index.

    By Matt Tucker, CFA
  • uploads///SPDR Barclays Capital High Yield Bond ETF JNK vs iShares iBoxx High Yield Corp Bond ETF HYG
    Macroeconomic Analysis

    Tracking Bond ETFs

    Although bond ETFs in the US are less liquid than the stock ETFs (SPY), they are more liquid than those in some other developed markets (EFA).

    By Matt Tucker, CFA
  • uploads///iShares Dow Jones US ETF IYY vs iShares Core SP  ETF IVV
    Macroeconomic Analysis

    Know More: Bond ETFs Versus Equity ETFs

    Stock ETFs (Exchange Traded Funds) and bond ETFs actually have quite a few things in common.  Both vehicles typically track an index, both trade on an equity exchange, and both give investors exposure to a diversified portfolio of securities in one trade.  However, because stocks and bonds trade very differently, it stands to reason that […]

    By Matt Tucker, CFA
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