Vanguard Short-Term Corporate Bond ETF
Why low inflation in the US shows that resources are being wasted
The speech took an interesting turn when Kocherlakota questioned his audience on they should care that inflation is too low.
Bill Gross Analyzed ‘Carry’ in Credit Risk, Volatility, and Liquidity
In his June 2016 investment outlook, Bill Gross stated that “credit risk or credit ‘carry’ offers little reward relative to potential losses.”
Jeffrey Gundlach Advises Investors to Invest in Mortgages
During a gradual rate hike scenario, Gundlach believes investment in mortgages is the best strategy.
Investment-Grade Bond Funds Record Highest Inflows of 2016
According to Lipper funds flow data, investment-grade bond funds saw net inflows of $3.1 billion—the highest inflows YTD (year-to-date)—during the week ending April 27.
Bill Gross Says These Instruments Have Investment Opportunities
Gross has suggested some short-term duration investment products since he believes economic growth may not reach the level of investor expectation.
Why Gundlach Believes the Bond Market Is Set Up for a Rally
Prominent bond investor Jeffrey Gundlach discussed the bond market’s performance and his expectations for the bond market in a recent interview.
Richard Bernstein: Falling Yields Are Testimony to Risk Aversion
Bernstein asked a rhetorical question: “Could there be anything that suggests extreme risk aversion more than the increasing proportion of global sovereign bonds that have negative yields?”
What Does the Green Bond Index Look Like?
Apprehensions over climate change, an emphasis on global pension funds over the integration of ESG in their investments, and new markets will fuel demand for this type of bond.
St. Louis Fed President James Bullard shares an alternative view
Bullard went on to talk about the international economy from an alternate view. Under this view, most features characterizing the economy remain the same as under the traditional view—except one.
How Big a Problem Could US Debt Become?
If we turn back the clock to before the recession, we find that US debt levels weren’t this high, and unconventional programs like quantitative easing helped the economy recover from the Great Recession.
Why Richard Bernstein Sees Risk in ‘Safe’ Investments
Richard Bernstein believes that investors’ flocking to fixed-income products and shunning equities has increased their risk.
Bill Gross: Monetary Policy on Steady but Slow Path
After the release of the FOMC’s November statement, Bill Gross said that monetary policy in the United States is steadily moving toward normalization, though its pace is slow.
FOMC: Why Did George, Mester, and Rosengren Dissent?
The September 2016 FOMC (Federal Open Market Committee) meeting was characterized by three dissents to the status quo on the federal funds rate.
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.
Can Fiscal Stimulus Do What Monetary Stimulus Couldn’t?
Fiscal stimulus, if it comes about, will help fuel demand-pull inflation.
What the World Bank Thinks Now about US Economic Growth
The World Bank expects the pace of US economic growth to be 1.9% this year—a sharp correction from the 2.7% pace the bank projected in January 2016.
Investment-Grade Corporate Bond Issuance Fell Last Week
Investment-grade corporate bonds worth $17.7 billion were issued in the primary market in the week ended April 22, 2016.
Spreads between High-Grade Bonds and Treasury Yields
If spreads widen further, high-grade bonds will become more attractive because yields and prices are inversely related. A rise in yields indicates falling prices.
Why the FOMC’s new guidance weakens the Fed’s credibility
The preferred measure of core inflation in the United States by the Federal Reserve is changes in the core PCE price index.
The relationship between interest rates and credit spreads
Examining credit spreads gives investors an idea of how cheap (a wide credit spread) or expensive (a narrow credit spread) the market for a particular bond category or a particular bond is.