American Funds - Bond Fund of America
Rate Hikes in 2016: Rebalancing Your Bond Mutual Fund Portfolio
Central bankers’ median projection for the federal funds rate at the end of 2016 is 1.4%, according to the minutes from the December 2015 meeting. This amounts to four rate hikes in 2016.
Investment-Grade Bond Funds Saw Outflows in Week Ended November 25
For the week ended November 25, investment-grade bond funds saw net outflows of $1.46 billion after witnessing two consecutive weeks of inflows.
What Factors Will Influence the Fed’s Rate Hike Decision the Most?
Market participants are closely watching the two-day Federal Open Market Committee (or FOMC) meeting from March 15–16, 2016.
What to Expect from the FOMC Meeting
The two-day FOMC meeting will begin on March 15, 2016, and market participants will be closely watching for clues about when the US central bank may raise interest rates again.
Investment-Grade Bond Issuance Rose 8% in 2015
According to Lipper Funds Flow data, in 2015, investment-grade bond funds saw net inflows of $1.83 billion up to December 30, 2015.
Should You Consider Investment-Grade Bond Mutual Funds in 2016?
Investment-grade bonds are attractive, as they provide that bit of extra yield without compromising much on credit quality.
No Investment-Grade Corporate Bond Issuance due to Rate Hike
There was no issuance of investment-grade corporate bonds in the primary market in the week to December 18, 2015.
The December FOMC Meeting: 3 Possible Scenarios
The FOMC meets on December 15–16 to decide whether a rate hike takes place in 2015 or not.
A Scenario Analysis: What if the Federal Reserve Were To…
Policymakers from the Fed will meet a little over a month from now. The Treasuries yield curve would be directly impacted by any tinkering with interest rates.