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Interest in fixed income has increased over the past year after rising bond yields put them back on investors' radars. Related storiesCorporate bonds with high yields are the new darling as investors dig for returns that beat inflation, Klein said. The Bloomberg US Corporate High Yield Index, a measurement of non-investment grade bonds, has a yield to worst (a measure of the lowest possible yield) of 7.65% and a one-year total return of 12.9%. It's unusual for equities to be doing very well and high yield to be doing poorly, he added. But buyers beware: high-yield bonds are also called non-investment grade and junk bonds, and it's for good reason.
Persons: there's, Goldman Sachs, Patrick Klein, Franklin, Klein, Goldman, don't Organizations: Business, Franklin Templeton, Bloomberg
The S&P 500 Index last week entered a bull market, meaning that it notched a 20% rally from its low in October. Moreover, investors appeared calmer than they have in years, after the United States suspended the debt ceiling in time to avoid a default, allowing investors to breathe a sigh of relief. The May Consumer Price Index and Producer Price Index reports, two key inflation prints, are also due the days that the Fed meets. But the United States could still suffer a downgrade to its credit rating, even though it avoided losing its ability to make payments on time. Tuesday: Consumer Price Index report for May and NFIB small business optimism index.
Persons: CNN — Stocks, Price, , JJ Kinahan, there’s, Karim El Nokali, Jerome Powell, ” El Nokali, , Joe Biden, Benjamin Jeffery, Patrick Klein, ” Josh Lipsky, it’s, Olivier d’Assier, “ It’s, George Mateyo Organizations: CNN Business, Bell, CNN, Nasdaq, United, Fed, IG North America, Fitch, AAA, BMO Capital Markets, Franklin, GeoEconomics, International Monetary Fund, Treasury Department, US Treasury, Key Private Bank, Federal Reserve Bank of New York Survey, Consumer, Federal Reserve, Federal, University of Michigan Locations: United States, US
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