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☆ How to boost the cash flow even more from your fixed income investments
▼ + stars: | 2023-07-20 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +3 min

With interest rates peaking, now might be a good time to boost the cash flow you're generating in your fixed income portfolio. A core and satellite approach to boost cash flow For liquidity, UBS recommends a core-satellite approach. You also know when you'll be getting your income payments from the bonds, which generally pay interest twice a year. The first is "everyday cash," which means investors should be stashing money that they can readily withdraw if needed. The second tier is "savings cash" for money that you can afford to lock up for a short period of time.

Persons: US1Y, Marianna Mamou, you'll, Mamou, Michael Bloom Organizations: UBS, Bread Financial, Bread, Investors, SEC

☆ Grab a 4.9% yield for parking money at this bank
▼ + stars: | 2023-07-18 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +1 min

Bread Financial recently boosted its savings account annual percentage yield to 4.9%, an increase of 15 basis points. An analysis by Stephens showed that a handful of institutions boosted yields on savings products this week. Synchrony Financial hiked its savings account yield 20 basis points to 4.5%. SLM , known as Sallie Mae, lifted its yield to 4.25%, up 15 basis points, and SoFi Technologies raised the rate on its savings account to 4.4%, an increase of 10 basis points. When it comes to shopping for online savings accounts, investors shouldn't just look for the highest yields, especially because banks can adjust what they're willing to pay.

Persons: Stephens, Sallie Mae, Vincent Caintic, —, shouldn't, — CNBC's Michael Bloom Organizations: Bread Financial, Synchrony, Technologies Locations: Columbus , Ohio, Treasurys

With the second half of the year now underway, investors may want to take another look at their fixed income portfolio. High yields have been a boon to income investors, as the Federal Reserve increased interest rates over the past year. "For more of our clients, we're looking to have the fixed income of the portfolio provide lower correlation and income," he said. Greg Wilensky, head of U.S. fixed income at Janus Henderson Investors, generally prefers securitized assets such as asset-backed and mortgage-backed securities. "You can't think of high yield bonds in the same thought as Treasurys," said Cox of eToro.

Persons: James Franke, Sonal Desai, She's, We're, It's, Desai, Franke, Rothschild, Callie Cox, Greg Wilensky, Janus Henderson, Cox Organizations: Federal Reserve, Treasury, Rothschild Investment, Franklin, Janus, Janus Henderson Investors Locations: Treasurys, U.S, eToro

☆ Fixed income investing is heating up. Here are a couple stocks to play it, according to Bank of America
▼ + stars: | 2023-07-13 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +2 min

A higher interest rate environment has made fixed income exciting, and Bank of America has a couple of stock plays on the theme. The Federal Reserve's series of 10 rate hikes has boosted yields on Treasurys and money market funds. Bank of America analyst Craig Siegenthaler says fixed income reallocation will continue to be a theme, and that could lift the shares of certain asset managers and brokers. "We believe [ BlackRock and Tradeweb ] are the two best ways to invest in fixed income with both retirees and pension plans raising allocations to traditional fixed income over the next 12 months," he said in a Tuesday report. He added investors should "expect sizable flows into fixed income, money markets and private credit over the next 12 months and look for bond trading volumes to increase."

Persons: Craig Siegenthaler, Tradeweb, Siegenthaler, – CNBC's Michael Bloom Organizations: Bank of America, Investment Company Institute . Bank of America, brokerages, LPL Locations: BlackRock

☆ The high yield on this 1-year CD just got even hotter
▼ + stars: | 2023-07-11 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +2 min

Bread raised the annual percentage yield on its 1-year certificate of deposit to 5.35%, an increase of 10 basis points. That bump higher makes it the 1-year CD with the highest yield among banks under Stephens' coverage, according to a Monday report from the firm. Consider that a 2-year CD at Bread has an APY of 5%, while a 5-year CD yields 4.25%. "The past two weeks have been relatively quiet for online bank rate moves, and we wonder if this is holiday-related or if the online bank demand for deposits has slowed," said Vincent Caintic, an analyst at Stephens. He added that another driver behind the deceleration in deposit rate increases could be a slowdown of loan growth among online banks.

Persons: Bread, Stephens, you'll, Vincent Caintic, — CNBC's Michael Bloom Organizations: First Internet Bank of Indiana, Federal Deposit Insurance

☆ These funds offer yields exceeding 4% and they’re on discount. Here’s why it might be time to buy them
▼ + stars: | 2023-07-10 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +3 min

But whether it's time to back up the truck and stock up on cheap dividend payers will depend on a range of factors, including risk appetite and style. Notable constituents include Altria Group, which has an 8.3% dividend yield, and Verizon , which touts a yield exceeding 7%. This would include the Vanguard High Dividend Yield ETF (VYM) , which has a total return of about -1.6% this year, and the WisdomTree U.S. Total Dividend ETF (DTD) , with a total return of 2.5%. VIG, for instance, has a total return of 6% this year, but offers a 30-day SEC yield of 1.82%. Whether it's time to snap up these dividend payers will also depend on your risk appetite and your timeline.

Persons: Johnson, Ryan Jackson, Jackson, VIG, Jordan Benold, Benold Organizations: Exxon Mobil, Johnson, Morningstar, SEC, Altria, Verizon, Vanguard, Microsoft, Apple, Dow Locations: U.S

☆ European markets stage muted open following Thursday's sharp losses
▼ + stars: | 2023-07-07 | by ( Hannah Ward-Glenton | ) www.cnbc.com time to read: +1 min

June's payrolls report – the big event on investors' radar in this holiday-shortened week – will be released Friday at 8:30 a.m. Economists polled by Dow Jones anticipate payrolls climbed by 240,000 last month, which would suggest a cooling from May's gain of 339,000 positions. They are also estimating that the unemployment rate ticked down to 3.6%, compared to May's rate of 3.7%. Investors hope Friday's report will show signs of wage growth moderating. Economists predict that average hourly earnings climbed by 0.3% in June and rose 4.2% from 12 months prior.

Persons: June's, Dow Jones, payrolls, Darla Mercado, Jeff Cox Organizations: Federal Reserve's

☆ Get a risk-free 5% return as the 2-year Treasury yield hits a 16-year high. Here’s how to buy one
▼ + stars: | 2023-07-06 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +3 min

Income-seeking investors are primed to pick up a risk-free return exceeding 5% now that the yield on the 2-year Treasury has spiked to highs last seen in 2007. Indeed, the yield on the 2-year Treasury – which is especially sensitive to Fed policy – leapt to 5.12%, its highest level since June 15, 2007. The rate on the 10-year Treasury also jumped over 4% at its highest point of the day. How to buy in To purchase Treasurys directly from the U.S. government, you can set up an account on TreasuryDirect.gov . If inflation outpaces the yield you're earning, it could erode the real rate of return earned on these notes.

Persons: Dow Jones, –, Luis Alvarado, — CNBC's Michelle Fox, Nick Wells Organizations: Treasury, Traders, Private, Federal Reserve, U.S ., . Locations: Wells Fargo, Treasurys

☆ These energy investments spin out attractive income, even as oil prices have fallen
▼ + stars: | 2023-07-05 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +3 min

Energy stocks are also this year's underdogs, with the S & P sector down more than 7%. In turn, the limited partners collect income distributions from the business. MLPs aren't subject to federal income taxes, but the limited partners are responsible for levies on the income they receive. In that case, the C-corp pays corporate income taxes and the shareholders are responsible for levies on dividends they get. Tax hurdles Attractive income aside, investors need to be on the lookout for where they keep these MLPs.

Persons: there's, Stephen Ellis, Ellis, MLPs, George Gagliardi, you'll Organizations: West Texas, Energy, Morningstar Research Services, Wealth Management, MLP, Internal Revenue Service

☆ Here's the next yield play for fixed income as rates peak, according to BlackRock
▼ + stars: | 2023-06-30 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +2 min

There is more to juicing yield than hiding out in money market funds, and BlackRock says now is the time to hop into high-quality fixed income. Indeed, the combination of higher interest rates and an inverted yield curve has made money market funds and Treasury bills tempting. "As rates appear set to peak with the approaching end of the Fed's hiking cycle, investors may want to consider stepping into high-quality, medium-term fixed income." BlackRock noted that intermediate and long-term fixed income exchange-traded funds have received $27.6 billion in inflows year to date, 15% greater than the amount of cash hitting their short-term counterparts. "At these levels, we believe investors are adequately compensated for long-term inflationary risk, given many EM central banks target ~3% inflation," the firm noted.

Persons: US3M Organizations: BlackRock, Federal Reserve

☆ Dividend payers underperformed in the first half. Here’s why they could make a comeback
▼ + stars: | 2023-06-28 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +2 min

Dividend payers are on track for their worst half against stocks that don't pay dividends since 2009, Ed Clissold, the firm's chief U.S. strategist, wrote in a June 22 report. "Our index of S & P 500 Dividend Payers underperformed Non-Payers by 13.7% year to date," he said. Meanwhile, the ProShares S & P 500 Dividend Aristocrats ETF (NOBL) is up 3% in 2023. SPYD .SPX YTD line SPDR Portfolio S & P 500 High Dividend ETF versus the S & P 500 in 2023 One of the reasons behind dividend stocks' underperformance is the fact that they have low betas. For starters, dividend payers tend to outperform during the second year of the Federal Reserve's tightening cycles, NDR found.

Persons: Ned Davis, Ed Clissold, Clissold, Jerome Powell, Michael Bloom Organizations: Ned Davis Research, underperformed, Nasdaq

☆ Farm boom, fires make Bolivia No. 3 in world for forest loss
▼ + stars: | 2023-06-28 | by ( Lucinda Elliott | ) www.reuters.com time to read: +3 min

[1/2] A burnt forest is pictured at the Guarani Nation Ecological Conservation Area Nembi Guasu in the Charagua region, an area where wildfires have destroyed hectares of forest, Charagua, Bolivia, August 23, 2019. REUTERS/David Mercado/FILE PHOTOMONTEVIDEO, June 28 (Reuters) - Forest loss in Bolivia accelerated by about a third last year with clearances in the country trailing only giant neighbor Brazil and the Democratic Republic of Congo, a forest monitoring project report shows, blaming farm expansion and fires. The South American country lost nearly around 3,860 square kilometers (1,490 square miles) of primary forest in 2022, according to Global Forest Watch, an area nearly the size of Rhode Island. Fires, some linked to land clearances, have also played a big part in forest loss in recent years, the Global Forest Watch report said. In a report on Monday Global Forest Watch, backed by the nonprofit World Resources Institute and drawing on forest data collected by the University of Maryland, said the world lost an area of old-growth tropical rainforest the size of Switzerland last year.

Persons: David Mercado, Marlene Quintanilla, Daniel Larrea, Lucinda Elliott, Adam Jourdan, David Gregorio Our Organizations: Ecological Conservation, REUTERS, Democratic, Global Forest Watch, Nature Foundation, Global, Watch, Monday Global Forest Watch, World Resources Institute, University of Maryland, Thomson Locations: Guarani, Charagua, Bolivia, MONTEVIDEO, Brazil, Democratic Republic of Congo, Rhode Island, Santa Cruz, Beni, Bolivian, Switzerland

☆ Cash is all the rage as yields pop, but stocks are the way to go long term, BofA says
▼ + stars: | 2023-06-27 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +2 min

Over the long term, stocks are the way to grow wealth, according to Bank of America. Some $5.43 trillion is in money market funds, as of the week ending June 21 , according to the Investment Company Institute. "That's another way of saying that the S & P 500 is one of the world's best wealth-generating machines ever constructed," she added. Further, financial crises tend to be followed by economic and earnings growth cycles, along with sustained price gains for stocks. "All of the above are powerful structural forces for future long-term earnings growth — and key reasons not to rebalance too far in the direction of money market funds," Sanfilippo wrote.

Persons: Lauren Sanfilippo, Sanfilippo, — CNBC's Michael Bloom Organizations: Bank of America, Investment Company Institute . Retail

☆ This little-known income play offers portfolios price stability and yield
▼ + stars: | 2023-06-26 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +4 min

Floating rate notes' short duration gives them a measure of relative price stability, while offering investors' portfolios some support through variable income. It's the prospect of higher rates for longer, along with the inverted yield curve, that make floating rate notes an attractive play for some. For his clients, Winter has committed between a quarter and a third of investors' fixed income allocation to floating rate notes. "It's lower coupon rates versus the opportunity to lock in high fixed rates now if you consider the environment," said Collin Martin, fixed income strategist at Charles Schwab. That means in a recession, you may not get an increase in floating rate note prices to offset a decline in equities, he said.

Persons: Allison Bonds, Bonds, Jerome Powell, Paul Winter, Winter, aren't, Collin Martin, Charles Schwab Organizations: State Street's U.S, Treasury Bond ETF, Federal Reserve, Federal, Five Locations: Treasurys

☆ Here’s where advisors are hunting for yield and portfolio diversification, Bank of America finds
▼ + stars: | 2023-06-23 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +2 min

Investors' demand for alternative investments is cooling, but financial advisors anticipate adding these assets over the long term to boost diversification, a Bank of America survey of financial advisors found. Last week, the firm conducted its quarterly survey of financial advisors and received responses from 159 individuals. In the world of income, just under half of advisors are rotating client deposits into higher-yielding money market funds, while about 34% are raising cash and liquidity due to market uncertainty, Bank of America found. Indeed, retail money market fund assets grew to $1.99 trillion during the week ended June 21, according to the Investment Company Institute . Bank of America predicts that when volatility normalizes, advisors will reduce the amount of cash they're squirreling away for clients, but they will continue to sort into higher-yielding liquid products – like these money market funds.

Persons: Craig Siegenthaler, Siegenthaler, — CNBC's Michael Bloom Organizations: Bank of America, Beta Fund, alts, of America, Investment Company Institute Locations: 5Ys

☆ Why GM is sunsetting the classic Chevrolet Camaro
▼ + stars: | 2023-06-21 | by ( Robert Ferris | In | ) www.cnbc.com time to read: +3 min

Fans like Mercado have helped keep the Camaro alive since it was introduced as a competitor to the Ford Mustang in 1966. That makes the Ford Mustang the last vehicle in the segment standing in its current gas-burning form. By that time it was lagging far behind competitors: The Ford Mustang sold 72,489 units in 2019, and the Challenger, 60,997. Sedans and smaller calls made up 43% of all vehicle sales in 2010. "Just like we've done in the past, it had a little bit of a hiatus," said Harlan Charles, product manager for Corvette and Camaro.

Persons: Francisco, Cisco, Mercado, General Motors, Dodge, Ford, That's, Harlan Charles, we'll Organizations: CNBC, Ford, General, Stellantis, Dodge, Challenger, P Global Mobility, Sports, GM, Corvette

☆ Municipal bonds can offer your portfolio tax-free income and stability as recession fears loom
▼ + stars: | 2023-06-21 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +4 min

"People see [municipal bonds] as a defensive position for two reasons," said Shannon Saccocia, chief investment officer at NB Private Wealth. "Historically, municipal bonds have had low default rates," wrote Jared Woodard, investment and exchange-traded fund strategist at Bank of America, in a June 12 report. For instance, there's the Vanguard California Intermediate-Term Tax-Exempt Fund Investor Shares (VCAIX) and the Nuveen New York Quality Municipal Income Fund (NAN) . In select situations, some advisors are recommending closed-end municipal bond funds. Closed-end muni bond funds trading at a deep discount include the BNY Mellon Municipal Income (DMF) and the MFS High Income Municipal (CXE) .

Persons: Shannon Saccocia, Jerome Powell, Jared Woodard, Nisha Patel, Patel, Paul Winter Organizations: Bank of America, Bond, Muni Bond ETF, Vanguard, Income Fund, Five, BNY, Income Locations: York, BNY Mellon

Money market funds Assets in retail money market funds grew to $1.99 trillion, according to the latest data from the Investment Company Institute . Further, even as money market funds offer relative safety, they can still face some risk. Don't confuse money market funds with money market accounts. Though money market accounts – which are offered by banks – are protected by the Federal Deposit Insurance Corporation, up to $250,000, money market funds are not. Certificates of deposit and high-yield savings accounts Liquidity should be a big factor for investors eyeing bank products like CDs and high-yield savings accounts.

Persons: Jamie Hopkins, Hopkins, Don Grant, Jordan Benold, Lehman, Danika Waddell, BancShares, Waddell Organizations: Federal, Carson Group, Sabre, Investment Company Institute, Investors, –, Lehman Brothers, Federal Deposit Insurance Corporation, Xena, BMO, Ally Financial, CIT Bank, Synchrony, Ally, Capital

☆ Fed recap: Breaking down the market's reaction to the Fed's pause and all of Powell’s key comments
▼ + stars: | 2023-06-14 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +1 min

After a string of 10 consecutive rate hikes, the Federal Reserve is expected to hold off on increases – at least for now. Don't get your hopes up about the Fed signaling the end of its policy tightening. Indeed, key metrics like May's consumer price index show that the 12-month pace of inflation slowed to 4%, but it still has a way to go. Fed officials will also update their Summary of Economic Projections, detailing their outlooks for gross domestic product, the unemployment rate and inflation, per the personal consumption expenditures price index. Read more about the Fed's key decision here.

Persons: Darla Mercado, Jeff Cox Organizations: Federal Reserve, Federal, Fed

☆ The year is half over. Here are three considerations to make sure your portfolio is on track
▼ + stars: | 2023-06-13 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +5 min

Rebalance your portfolio Tech's remarkable bounce in 2023 could result in a significant portfolio tilt toward that sector — and an overconcentration that could hurt in the event there's a downturn. That means it's time to trim down a few of those oversized positions and make sure your asset allocation is properly reflecting your goals. Check in with cash Cash is another asset that requires your attention, especially in an era when investors have a host of options of where keep those funds. Cash you don't need for many years can go right back into your stock portfolio so you can keep ahead of inflation, Pearce said. "Make sure you have an appropriate amount of cash, and make sure you're not sitting on an enormous pile of cash that's doing nothing," he added.

Persons: Jorrell Bland, Josh Brown, Tony Roth, haven't, Wilmington Trust's Roth, Roth, Cash, Jerrod Pearce, Goldman Sachs, Marcus, Pearce, — CNBC's Michael Bloom Organizations: Nasdaq, Federal Reserve, Mitlin, Ritholtz Wealth Management, Wilmington Trust Investment Advisors, JPMorgan Equity, Wilmington, Creative Planning, Bread, Bread Financial, Citizens Financial, Treasury Locations: Wilmington, Treasurys

☆ Goldman Sachs raises year-end S&P 500 target to 4,500, anticipating 5% upside
▼ + stars: | 2023-06-09 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +1 min

Goldman Sachs is boosting its year-end target on the S & P 500 to 4,500, citing a broadening rally that goes beyond the largest tech names. The new target represents about 5% upside from current levels on the broad-market index and is an increase from Goldman's previous target of 4,000. The S & P 500 is up nearly 12% this year. Though a handful of Big Tech stocks — namely Apple , Microsoft , Alphabet , Amazon , Nvidia , Meta and Tesla — are some of the highest fliers in the S & P 500 this year, other sectors are perking up . Check out CNBC's Market Strategist Survey here to see Wall Street's latest year-end targets.

Persons: Goldman Sachs, David Kostin, Kostin, Tesla, — CNBC's Michael Bloom Organizations: Big Tech, Apple, Microsoft, Nvidia, Meta

☆ Stocks making the biggest moves midday: Affirm, Warner Bros. Discovery, Stitch Fix, Campbell Soup and more
▼ + stars: | 2023-06-07 | by ( Michelle Fox | ) www.cnbc.com time to read: +3 min

Affirm — Shares of the payments company surged 6% after Affirm and Amazon announced a new compatibility feature. Stitch Fix — The stock soared about 32% after the online personalized styling service company reported a narrower-than-expected loss for the fiscal third quarter. Stitch Fix posted a loss of 19 cents per share, compared with the 30-cent loss per share anticipated by analysts, according to Refinitiv. The company reported first-quarter earnings of $1.45 per share, while analysts polled by Refinitiv called for $1.24 per share. Revenue fell short of expectations, however, coming in at $597 million, versus the $602 million estimated by Wall Street.

Persons: Chris Licht, Buster's, Dave, Refinitiv, Morgan Stanley, Rosenblatt, Campbell, Canaccord Genuity, Coinbase, Wood, —, Jesse Pound, Brian Evans, Darla Mercado Organizations: Amazon, Revenue, Warner Bros, Dave, Wall Street, GameStop, FactSet, Petrobras —, StreetAccount, U.S . Securities, Exchange Commission Locations: Refinitiv

☆ Stock futures are little changed on Wednesday night as rally hesitates: Live updates
▼ + stars: | 2023-06-07 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +1 min

Stock futures were flat on Wednesday evening, as investors await the next market catalyst. Futures linked to the S&P 500 ticked lower by 0.04%, while Nasdaq 100 futures inched down by 0.09%. Futures tied to the Dow Jones Industrial Average dropped 17 points or 0.05%. During the regular session Wednesday, the S&P 500 and the Nasdaq Composite appeared to take a breather from their recent rally. "It's widely expected they will pause, but it's really going to be important what their guidance is and what the [consumer price index] number on Tuesday will be and the [producer price index]."

Persons: Matthew Furlong, Ryan Cohen, Dow, Barbara Doran, it's, Jeff Cox Organizations: Nasdaq, Dow Jones, GameStop, Fed, BD8 Capital Partners, Federal

☆ Federal judge blocks Florida's ban on gender-affirming care for 3 trans youths
▼ + stars: | 2023-06-06 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +2 min

A federal judge in Florida issued a preliminary injunction that will permit three transgender children to receive puberty blockers, even as the state has banned gender-affirming care for minors. Judge Robert Hinkle on Tuesday said the three youths, who are children of the plaintiffs in the case, may receive GnRH agonists, known as puberty blockers. This suit challenges legislation in Florida that bans gender-affirming care for minors, which Gov. The organization estimates that more than 30% of transgendered youth ages 13 to 17 reside in states where they can't access care. Thus far, 20 states have passed laws or policy that ban gender-affirming care for individuals up to age 18, the HRC found.

Persons: Robert Hinkle, Ron DeSantis, Hinkle, DeSantis Organizations: U.S . House, U.S, Capitol, Human, HRC Locations: Florida

☆ D.A. Davidson downgrades Apple to neutral, says Vision Pro is already priced into the stock
▼ + stars: | 2023-06-05 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +2 min

Davidson is downgrading Apple to neutral from buy, saying that any good news from the new Vision Pro mixed-reality headset launch is already reflected in the company's share price. He noted, "Vision Pro already in the stock." Apple announced the $3,499 Vision Pro earlier Monday at its Worldwide Developers Conference . The availability of content is another hurdle for the tech giant, even though Disney+ will be available on the Vision Pro , the firm said. "In our view Meta Platforms stands to benefit from Apple driving consumer adoption and because it offers hardware at much lower prices," Forte wrote.

Persons: D.A, Davidson, Tom Forte, Forte, Michael Bloom Organizations: Apple, Worldwide Developers, Disney, Vision, Facebook

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