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☆ These bond funds withstood the 2008 and 2020 recessions. What investors can learn from them
▼ + stars: | 2023-11-07 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +5 min

Investors curious as to whether their bond funds could withstand an economic downturn would do well to look back to the last two recessions. The PGIM Core Bond Fund (TAIBX) and the Calvert Core Bond Fund (CLDAX ) earned returns of more than 8% from December 2007 to the end of June 2009, according to data from Morningstar Direct. Standouts include the Carillon Reams Core Bond Fund (SCCIX) , which incurred a 7.55% return from February through April 2020, per Morningstar. The Johnson Institutional Core Bond fund (JIBFX) and American Funds' Bond Fund of America (ABNDX) round out the top three, with total returns in that period of more than 4%. A combo of attributes Core bond funds have a combination of features that prepare them for downturns.

Persons: Liz Young, Lehman, Calvert, Paul Olmsted, Olmsted Organizations: Nasdaq, Federal, Lehman Brothers, Bond Fund, Morningstar Direct, Funds, Bond Fund of America, Morningstar, Treasury Bond ETF

☆ LVMH buys eyewear brand Barton Perreira as it looks to rebound from luxury slowdown
▼ + stars: | 2023-11-06 | by ( Robert Frank | ) www.cnbc.com time to read: +4 min

Barton Perreira sunglasses are displayed during 'A Good Time At Goodman's' held at Goodman's Men's Store in New York City. LVMH is buying luxury eyewear brand Barton Perreira, famed for making James Bond's shades, as it taps into the fast-growing designer sunglass market. LVMH's Thelios eyewear division agreed to acquire the Irvine, Calif.-based Barton Perreira for an undisclosed sum. Barton Perreira was founded in 2007 by Bill Barton and Patty Perreira, after they left Oliver Peoples when it was acquired by Oakley. LVMH is buying luxury eyewear brand Barton Perreira, famed for making James Bond's shades, as it taps into the fast-growing designer sunglass market.

Persons: Barton, James, Barton Perreira, Alessandro Zanardo, LVMH, Louis Vuitton, Celine, Loewe, Berluti, Zanardo, Thelios, Daniel Craig, Joe, Demi Lovato, Sandra Bullock, Ryan Gosling, Barton Perriera, Bill Barton, Patty Perreira, Oliver Peoples Organizations: Irvine, French, maisons, Hollywood, Oakley Locations: New York City, Calif, Asia, maisons, U.S, Europe, Italy

☆ After hurricane, Mexican president urges insurers to hurry payouts
▼ + stars: | 2023-10-27 | by ( ) www.reuters.com time to read: +2 min

[1/2] Hospital worker Jesus Rojas fixes his damaged house in the aftermath of Hurricane Otis in Acapulco, Mexico, October 27, 2023. REUTERS/Alexandre Meneghini/File Photo Acquire Licensing RightsMEXICO CITY, Oct 27 (Reuters) - Mexican President Andres Manuel Lopez Obrador on Friday urged insurance companies to speed up payouts after powerful Hurricane Otis wreaked havoc on Acapulco's beach resorts and surrounding impoverished communities. The storm intensified with unexpected speed just prior to making landfall on Wednesday, becoming the most powerful storm to ever strike Mexico's Pacific coast. In Acapulco, Otis claimed at least 27 lives according to the local governor's tally issued on Thursday, which has not been updated. The investment manager calculated "a high probability" Mexico will get half of the bond's $125-million payment earmarked towards Pacific hurricanes.

Persons: Jesus Rojas, Alexandre Meneghini, Andres Manuel Lopez Obrador, Otis, Lopez Obrador, CoreLogic, Bond, Stefanie Eschenbacher, David Alire Garcia, Rod Nickel Organizations: REUTERS, MEXICO CITY, Hurricane, Investments, Pacific, World Bank, Thomson Locations: Hurricane, Acapulco, Mexico, MEXICO

☆ Protect your portfolio income from hefty state taxes with these funds
▼ + stars: | 2023-10-26 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +4 min

Investors in high-tax locales can protect some of their portfolio income from steep levies by adding state-specific municipal bond funds to their fixed-income roster. "In the muni bond fund market, we're seeing yields higher than they have been in more than a decade," said Amy Arnott, portfolio strategist for Morningstar Research Services. That's because while muni bond income is generally free of federal taxes, it can also avoid state levies if the investor resides in the state where the bond was issued. That's where state-specific muni bond funds come into the picture. See below for a chart of 10 large state-focused muni bond funds.

Persons: Bonds, haven't, Amy Arnott, Dan Herron, Herron, Arnott, CNBC's Gabriel Cortes Organizations: Federal Reserve, Muni Bond ETF, Morningstar Research Services, Vanguard, SEC, Vanguard New, CPA, Wealth Advisors, muni Locations: California, New York, Massachusetts, Ohio, Jersey

"When the 10-year yield goes up, it will have a knock-on effect for almost everything," according to Brett House, economics professor at Columbia Business School. There are many factors driving the recent spike in Treasury yields, economists said. Most of the recent jump in Treasury yields is due to a so-called term premium, said Andrew Hunter, deputy chief U.S. economist at Capital Economics. Student loans could get pricierThere is also a correlation between Treasury yields and student loans. The government sets the annual rates on those loans once a year, based on the 10-year Treasury.

Persons: Jerome Powell, Mark Hamrick, Brett House, Andrew Hunter, Hunter, Tony Dwyer, Canaccord Genuity, Freddie Mac, Eugenio Aleman, Raymond James Organizations: Federal, Stock, Fed, Columbia Business School, Treasury, Capital Economics Locations: U.S

"When the 10-year yield goes up, it will have a knock-on effect for almost everything," according to Columbia Business School economics professor Brett House. Why Treasury yields have jumpedA bond's yield is the total annual return investors get from bond payments. There are many factors driving the recent spike in Treasury yields, economists said. Student loans could get pricierThere is also a correlation between Treasury yields and student loans. The government sets the annual rates on those loans once a year, based on the 10-year Treasury.

Persons: Jerome Powell, Mark Hamrick, Brett House, Andrew Hunter, Hunter, Freddie Mac, Eugenio Aleman, Raymond James Organizations: Treasury, Columbia Business School, Fed, Capital Economics Locations: U.S

Investors were handed an income opportunity they haven't seen in more than a decade when the 10-year Treasury yield climbed near 5% on Thursday. US10Y 5Y mountain 10-year Treasury A 5% yield on the 10-year is a good value, said Kathy Jones, Charles Schwab's chief fixed income strategist. A real yield is a bond's nominal yield minus inflation. "With the 10-year yield nearing 5%, it could be your sign to pick them up." There is also the Vanguard High Dividend Yield ETF (VYM) , which has lost 2.59% and charges 0.06% in fees.

Persons: Barry Glassman, Kathy Jones, Charles Schwab's, Callie Cox, Schwab's Jones, Amy Arnott, Morningstar, Arnott, Cox, John Croke ,, Jones, Morningstar's Arnott Organizations: Treasury, Wealth Services, LendingClub, Vanguard Locations: eToro

☆ Get tax-exempt income on the cheap as bond shake-up hits munis
▼ + stars: | 2023-10-12 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +4 min

Tax-exempt income and relative safety are on sale for investors who are sniffing around municipal bonds. Tax-exempt income Interest income from municipal bonds is exempt from federal income tax — and can avoid state and local levies, too, if an investor and the bond issuer are in the same jurisdiction. This feature makes munis especially attractive to high-income investors in the 32% marginal federal income tax bracket and higher. Investors weighing a tax-exempt municipal bond against a corporate bond would do well to check out the tax equivalent yield. Schwab's Howard noted that the 5- to 7-year part of the municipal bond curve is favorable.

Persons: MUB, Nathan Will, Will, it's, Cooper Howard, Schwab's Howard, Shannon Saccocia Organizations: Federal Reserve, Muni Bond ETF, Vanguard, AAA, Bond, ., New York Life Investments, Schwab Center, Financial Research Locations: munis, muni

☆ Bonds are selling off as stocks tumble. Here’s what it means for 60/40 portfolios
▼ + stars: | 2023-10-05 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +5 min

The 60/40 portfolio wasn't spared, either: The iShares Core Growth Allocation ETF (AOR) , which has a 60/40 split, is facing declines from both asset classes. AOR YTD line AOR's performance year to date The slump harkened back to 2022, when equities fell alongside bonds. "We don't see rates going back to the pre-Covid levels," he said. "[I]nvestors still hate bonds at these levels — rates we would've dreamed of two years ago," said duQuesnay. Vanguard's Aliaga-Diaz noted that the 60/40 portfolio will average 6% on a 10-year forward-looking basis, so there are bound to be tumultuous times and periods of strong performance.

Persons: —, wasn't, They're, Blair duQuesnay, Roger Aliaga, Diaz, Aliaga, duQuesnay, DuQuesnay, Joe Kalish, Ned Davis Organizations: Treasury, Dow Jones, Ritholtz Wealth Management, Vanguard, Fed, Ned Davis Research

☆ Expecting a recession? Advisors say you could make 40% returns with a simple bond trade
▼ + stars: | 2023-09-29 | by ( Ganesh Rao | ) www.cnbc.com time to read: +3 min

As interest rates potentially peak, investment advisors say there are now opportunities for hefty gains through certain government bonds. This was during the Covid-19 pandemic when the Bank of England had just cut rates to 0.1%. "You potentially could make a good capital appreciation when interest rates start to fall," Amis added. Amis expects the Bank of England to cut interest rates by 0.25 percentage points in August 2024. Meanwhile, interest rate traders in the U.S. expect the Federal Reserve to implement its first rate cut in July 2024.

Persons: Matthew Amis, Amis, Abrdn, Iain Stealey, Stealey Organizations: Bank of England, U.S, Treasury, Bank of, JPMorgan Asset Management, Federal Reserve Locations: U.K, U.S

Moves in bond yields, implied inflation breakeven rates, and inflation-adjusted 'real' yields suggest investors anticipate the Fed's 'higher for longer' interest rate policy will help lower inflation to around 2.5%. But this is not a re-pricing of the Fed's near-term trajectory, rather a repricing of the longer term economic and inflation outlook. This suggests the Fed is entering a phase of structurally higher rates than perhaps policymakers themselves, and certainly investors, had anticipated. Many analysts are skeptical that moves in bond yields can be broken down, quantified and compartmentalized with any great degree of accuracy. TIPS are a key market-based barometer of investors' inflation expectations, but they have their flaws.

Persons: Austan Goolsbee, Goldman Sachs, Marvin Barth, Barth, Torsten Slok, Jamie McGeever, Christina Fincher Organizations: Chicago Fed, CNBC, Securities, Apollo Global Management, Reuters, Thomson Locations: ORLANDO, Florida

☆ Yields on inflation-protected bonds spiked after the Fed’s tough outlook. What’s next for investors
▼ + stars: | 2023-09-27 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +4 min

The yield on the 5-year TIPS was 2.48% on Wednesday afternoon, while the rate on the 10-year TIPS was 2.29%. The par value of the bonds adjusts with inflation, based on the consumer price index for all urban consumers. Duration is a measure of a bond's price sensitivity to changes in interest rates, and as bond prices swooned in 2022, TIPS also suffered. "They're not always the perfect inflation hedge in the short term, and they are very sensitive to changes in market interest rates." Be aware that while there are no state or local taxes on interest, federal taxes apply.

Persons: Brett Wander, Morningstar, US5YTIPS, Bill Ahmuty, Amy Arnott, They're, Arnott Organizations: Federal Reserve, Schwab Asset Management, Fed, State Street Global Advisors, Morningstar Research Services Locations: TreasuryDirect

An NIO ET7 car model is presented at the NIO House, the showroom of the Chinese premium smart electric vehicle manufacture NIO Inc. in Berlin, Germany August 17, 2023. The company raised $500 million in a six-year put-four convertible bond and the same amount in a seven-year put-five bond. The shorter dated bond has a 3.875% interest rate, while the seven year bond's rate is 4.625%, Nio said in a Hong Kong Stock Exchange announcement. Nio posted a net loss of 6.12 billion yuan ($839.51 million) in the second quarter, versus a loss of 2.75 billion yuan in the corresponding period a year ago. Reporting by Scott Murdoch in Sydney; Editing by Michael PerryOur Standards: The Thomson Reuters Trust Principles.

Persons: Annegret, Nio, Scott Murdoch, Michael Perry Organizations: REUTERS, Rights, Nio, HK, Hong Kong Stock Exchange, Thomson Locations: Berlin, Germany, Sydney

☆ Important to stay invested but pay attention to valuations, says Aspiriant's Sandi Bragar
▼ + stars: | 2023-09-08 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailImportant to stay invested but pay attention to valuations, says Aspiriant's Sandi BragarSandi Bragar, Aspiriant chief client officer, joins 'Squawk Box' to discuss Bragar's thoughts on equities right now, how Aspiriant has diversified its portfolios, and the bond's investors are interesed in buying.

Persons: Aspiriant's Sandi Bragar Sandi Bragar

☆ Chinese property giant Country Garden pays its dollar bond interest within grace period, narrowly averting a default
▼ + stars: | 2023-09-05 | by ( Huileng Tan | ) www.businessinsider.com time to read: +2 min

China's Country Garden paid the interest on two US bonds within their grace periods, per media reports. The property giant also won approval from creditors to extend the maturity of an onshore bond. The payments mean that Country Garden — one of China's largest private developers — has managed to avoid a default just before one of the bond's grace period expires on Tuesday, per Reuters. Country Garden did not immediately respond to a request for comment from Insider. Country Garden Holdings' shares were 2% lower at 1 Hong Kong dollar apiece at midday on Monday.

Persons: — Organizations: Garden, Service, Reuters, HSBC, Garden Holdings, Hong Kong Locations: Wall, Silicon, Asia

☆ Savers dash for Belgian bond aimed at pushing banks to raise deposit rates
▼ + stars: | 2023-08-24 | by ( Yoruk Bahceli | ) www.reuters.com time to read: +2 min

Aug 25 (Reuters) - Belgium saw 4 billion euros of demand from savers for a new bond it launched on Thursday, its debt agency said, a strong start for the sale aimed at pressuring banks to raise their deposit rates. European lenders awash with cash have been resisting raising savings rates despite a surge in market interest rates as central banks fight inflation, prompting withdrawals by households looking for better returns elsewhere. "We want to boost competition and encourage banks to raise interest rates." On Thursday, the first day of the sale, savers bought 2.098 billion euros ($2.27 billion) of the bond, the debt agency said, followed by at least another 1.902 billion euros so far on Friday. But Jean Deboutte, director at Belgium's debt agency, noted some banks in Belgium had already raised their rates following plans for the new bond.

Persons: Jean Deboutte, Yoruk, Sudip Kar, Susan Fenton, Andrew Heavens Organizations: Yoruk Bahceli, Gupta, Thomson Locations: Belgium, Amsterdam, Brussels

☆ Muni bonds are cheap, but they may hide a tax surprise. How to prepare
▼ + stars: | 2023-08-23 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +4 min

High-income investors, especially those in the 32% marginal federal income tax bracket, appreciate that munis offer income that's exempt from federal levies. Paying for a discount Bond yields and prices move opposite to each other. That means municipal bonds are trading at discounts, which can come with tax ramifications if they're too cheap versus the bond's par value, or the amount the issuer will repay the investor at maturity. Consider an investor who is purchasing a 10-year municipal bond with a par value of $10,000, trading at $9,750. Investors also shouldn't overlook the fact that the muni bond is still providing them with tax-free income in their portfolios.

Persons: Bond, Cooper Howard, Charles Schwab, Tim Steffen, Baird, Steffen Organizations: Federal Reserve, Bond, SEC, Investors

☆ Now is the time to buy longer-dated bonds as 10-year Treasury yields push near 2007 highs, Schwab says
▼ + stars: | 2023-08-22 | by ( Michelle Fox | ) www.cnbc.com time to read: +3 min

With 10-year Treasury yields at their highest since shortly before the financial crisis, it's a good time to add duration to your fixed income portfolio, according to Charles Schwab fixed income strategist Cooper Howard. "If I were a betting man, I think the odds favor moving lower rather than higher," Howard said. Even if there is more upside in yields ahead, Howard still thinks the risk/reward looks attractive on longer-term bonds right now. US10Y YTD mountain US 10-year Treasury Where to add duration depends on your risk tolerance, according to Howard. "This is why we still maintain a favorable view toward extending duration and view the 10-year Treasury yields above 4% as an opportunity to add duration exposure," Alvarado wrote.

Persons: Charles Schwab, Cooper Howard, Howard, Jerome Powell, Wells Fargo, Luis Alvarado, He's, Alvarado, Michael Bloom Organizations: Federal, Investors, Treasury, Bloomberg Municipal Bond Index, Bloomberg U.S, Corporate, Treasury Bond Locations: Jackson Hole , Wyoming

☆ The tried and true 60/40 portfolio is making a comeback this year after cratering in 2022
▼ + stars: | 2023-08-17 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +4 min

The balanced portfolio — reported by many to have died in 2022 — is experiencing a revival. The iShares Core Growth Allocation ETF (AOR) that mimics the strategy lost 15.6% in 2022, including reinvested dividends. Investors sitting tight were rewarded, however, as 2023's run-up in stocks helped lift the 60/40 model. "And thanks to higher interest rates, investors are getting much higher compensation for taking interest rate risk compared to 2021-2022." A 60/40 portfolio isn't right for all investors and their situations, but it does create a foundation for sound investments, said Preston Cherry, CFP and founder of Concurrent Financial Planning.

Persons: —, Seema Shah, Ryan Salah, Salah, US6M, Preston Cherry, bode, Cherry Organizations: Asset Management, Capital Financial Partners, Federal, CFP, CNBC

☆ Here are ways to adjust your portfolio as some experts predict a soft landing for the economy
▼ + stars: | 2023-08-10 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +2 min

Morsa Images | E+ | Getty ImagesSome experts have reversed recession predictions and embraced a soft landing for the economy as the Federal Reserve continues to fight inflation. Increase bond allocations before interest rate cutsAs the Federal Reserve weighs an end to its rate-hiking cycle, some advisors are adjusting their clients' bond allocations. With expectations of future interest rate cuts, Atlanta-based CFP Ted Jenkin, founder of oXYGen Financial, has started shifting more money into bonds. watch nowTypically, market interest rates and bond values move in opposite directions. Consider extending bond durationWhen building a bond portfolio, advisors also consider so-called duration, which measures a bond's sensitivity to interest rate changes.

Persons: Barry Glassman, Glassman, Ted Jenkin, Jenkin, Douglas Boneparth Organizations: Federal Reserve, Wealth, CNBC's, CNBC's FA, Bone Locations: McLean , Virginia, Atlanta, CNBC's, New York

☆ Guggenheim predicts a moderate recession in 2024. Here are three steps to shore up your portfolio
▼ + stars: | 2023-08-09 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +2 min

A soft landing for the economy is looking unlikely, and now is the time to prepare your portfolio for a rocky 2024, according to Maria Giraldo of Guggenheim Investments. Contrary to the soft landing — and interest rate cuts — expected by many investors, Guggenheim sees a moderate recession looming in the new year. Instead, Guggenheim predicts both an economic downturn and lower interest rates in 2024. "We're seeing the impact of higher interest rates and higher funding costs on banks." She noted that investment-grade corporate bonds are yielding 5.5% to 6%.

Persons: Maria Giraldo, Guggenheim, Giraldo, Schwab Organizations: Guggenheim Investments, SEC

☆ The Federal Reserve is likely to keep rates high. Here's a strategy to generate income and reduce risk
▼ + stars: | 2023-08-03 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +2 min

Near-dated Treasurys have seen a sizeable boost since the Federal Reserve has embarked on its rate-hiking campaign, and a strategy that allows investors to generate income in the short term is taking off. To that effect, the firm this week launched a trio of Treasury bond laddering strategies: six-month, 12-month and 24-month offerings, managed by its Wasmer Schroeder Strategies team. "There are two bond investors: total return and income," Lafferty said. "For income investors, those higher yields are still at the shorter end, and these might be people who are pulling income out of their portfolio or retirees who need to spend their current income," he added. For investors who are thinking longer term, Schwab offers 5-year to 15-year ladders, as well as a 1-year to 5-year variety.

Persons: Bond, Charles Schwab, Warren Buffett, US3M, David Lafferty, Schroeder, Lafferty, Schwab Organizations: Federal Reserve, Schwab Asset Management, Treasury

☆ Investors are shifting their bond bets into this type of ETF
▼ + stars: | 2023-08-02 | by ( Jesse Pound | In Jesse-Pound | ) www.cnbc.com time to read: +2 min

Investors appear to be growing more comfortable with the path for interest rates and are shifting their fixed income bets accordingly. The list of the most popular bond funds by inflows in recent weeks is dominated by large passive funds. The iShares 20+ Year Treasury Bond ETF (TLT) and Vanguard Intermediate-Term Treasury ETF (VGIT) have both been two of the 10 most popular ETFs of any type over the past month, according to FactSet's flow data. The iShares 3-7 year Treasury Bond ETF (IEI) and the Vanguard Intermediate-Term Bond ETF (BIV) have also seen sizable inflows recently. Broad bond funds will often have longer duration than short-term funds, even if there is no reference to time frame on the label.

Persons: Scott Chronert, Fitch, — CNBC's Michael Bloom Organizations: Citi, Federal Reserve, Treasury Bond ETF, Treasury, Bond ETF, Bond Locations: outflows

☆ The Fed’s expected rate hike is about to sweeten yields on these investments
▼ + stars: | 2023-07-26 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +4 min

The Federal Reserve is widely expected to boost interest rates by another quarter percentage point Wednesday afternoon – and that's terrific news for fixed income investors hoping to grab a little more yield. Since March 2022, the central bank has raised rates 10 times – with July's expected hike marking the 11 th increase – to cool inflation. Consider that during the week of March 11, 2022, the rate on the 2-year Treasury note was 1.75%, according to Refinitiv. Investors who wish to squeeze a little more interest income from their cash holdings have opted for Treasury bills, with the 6-month bill yielding 5.5%. By buying multiple notes of different maturities, investors can "ladder" these Treasurys and reinvest the proceeds from maturing bonds into longer-dated issues.

Persons: Greg McBride, maturities, tradeoffs, McBride, SLM —, Sallie Mae —, Nick Wells Organizations: Federal Reserve, Investors, Treasury, Bank of Locations: Bank of Indiana, Treasurys

☆ Aston Martin races past second quarter expectations
▼ + stars: | 2023-07-26 | by ( Yadarisa Shabong | ) www.reuters.com time to read: +2 min

[1/2] FILE PHOTO-Employees work on a car at the Aston Martin factory in Gaydon, Britain, March 16, 2022. Aston Martin kept its 2023 forecast for volumes of about 7,000 vehicles and an adjusted core profit margin of about 20%. Aston Martin reported an adjusted operating loss of 38.9 million pounds ($50.2 million) and revenue of 381.5 million pounds in the quarter to June. Analysts on average had expected an adjusted operating loss of 51 million pounds on revenue of 344 million pounds, according to a company-compiled consensus. Aston Martin said it was also on track to meet its medium-term financial targets.

Persons: Aston Martin, Phil Noble, Amedeo Felisa, Felisa, JP Morgan, James Bond's, China's Geely, Yadarisa, Savio D'Souza, Mark Potter Organizations: Aston, REUTERS, HK, Lucid, Thomson Locations: Gaydon, Britain, Bengaluru

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