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Meanwhile, preferred securities can see yields around 7%. The Fed's rate hikes also sweetened yields on money market funds and certificates of deposit . Yet what is the best avenue for someone who is looking to generate the most income on a $10,000 investment — without taking on a lot of risk? The ICE BofA Fixed Rate Preferred Securities index, which tracks the performance of fixed-rate preferred securities, has a yield to maturity of 7.1%. "Right now you can't do better … than just owning short- to intermediate term high-grade fixed income," he said.
Persons: There's, Tom Graff, Mitch Goldberg, Goldberg, laddering, you'll, Ian Weinburg, Weinberg, Tim Ghriskey, Snyder, haven't, Ghriskey, Bonds, he'd, Graff Organizations: Treasury, Federal Reserve, Federal, CNBC Pro, Family Wealth, Pension Management, Ingalls, ICE, Securities, Citigroup, XIII, Index, SEC Locations: Baltimore, Melville , N.Y, Woodbury , N.Y, New York, Treasurys, preferreds
High yields and a volatile stock market have investors piling into money market mutual funds. Yet for retail funds, inflows are still climbing — the week ended Jan. 18 saw a $4.97 billion increase into retail money market funds, to bring net assets to a total of $1.74 trillion. One thing to keep in mind is that a money market fund is not FDIC-insured, while a money market account at a bank is insured. "If your money market fund yield is lagging, you probably have a high expense money fund." The net asset value of money market funds is normally maintained at $1 share.
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