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☆ 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

☆ The Cybertrucks that never came to be: This newly shared photo of Elon Musk shows early, more curvy designs for Tesla's truck in the background
▼ + stars: | 2023-07-19 | by ( Grace Kay | ) www.businessinsider.com time to read: +5 min

Walter Isaacson shared a photo that provides a rare peek at Tesla's early Cybertruck designs. Walter Isaacson shared a photo that appeared to have some previously unseen Cybertruck details in the background. Isaacson shared a photo with some early designs ideas for the Cybertruck in the background. Even a scaled back early design of the Cybertruck looks out of place next to a Ford pickup truck. Walter Isaacson on TwitterOther pictures on the board appear to be more reminiscent of Tesla's current design for the electric pickup truck.

Persons: Walter Isaacson, Tesla, Elon Musk's, Tesla's Cybertruck, Franz von Holzhausen, Elon Musk, Isaacson, CNBC's, Musk, James Bond's Lotus, Ridley Scott's, Saxon Organizations: Twitter, Silverado, DeLorean Locations: Ford, Texas

☆ 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

☆ 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

☆ This tax-exempt fund with a yield surpassing 4% is 'one of the best,' Morningstar says
▼ + stars: | 2023-06-22 | by ( Michelle Fox | ) www.cnbc.com time to read: +5 min

The fund invests at least 80% of its assets in investment-grade municipal bonds, and only up to 20% in those below investment grade. Municipal bonds are issued by government entities, such as a city or state, and raise money for public projects, such as building roads or schools. VWAHX 1Y mountain Vanguard High-Yield Tax-Exempt fund The fund, which trades under the ticker VWAHX, currently has a 30-day SEC yield exceeding 4%. "We are not risk averse, but we are very opportunistic about how we apply our risk," Kiselak explained. Opportunity in health care Health-care muni bonds make up about 15% of the fund, Kiselak said.

Persons: Morningstar, Mat Kiselak, —, Bond, Elizabeth Templeton, VWAHX, Kiselak, Jeff DeMaso, DeMaso, He's Organizations: SEC, Morningstar ., Vanguard, Independent Vanguard, Puerto Locations: Puerto Rico

☆ China's modest rate cut sends stocks lower
▼ + stars: | 2023-06-20 | by ( Joice Alves | ) www.reuters.com time to read: +4 min

LONDON, June 20 (Reuters) - European stocks and U.S. futures fell on Tuesday after China cut interest rates by less than expected and the market awaited more detail on Beijing's plans to shore up a stuttering economic recovery. The People's Bank of China lowered the medium-term lending facility rate on Thursday last week. "The meeting helped improve sentiment, but the market also understands that there's strategic competition between the U.S. and China," said Redmond Wong, Greater China market strategist at Saxo Markets. A central banker on Tuesday also hinted there was room for policy adjustment from the current path of aggressive rate hikes. Gold edged up 0.1% to $1,951.74 as the dollar index eased at 102.45 but lacked clear momentum as traders awaited U.S. Federal Reserve Chair Jerome Powell's testimony later this week for more direction on the interest rate path.

Persons: Susannah Streeter, Hargreaves Lansdown, Xi, Rodrigo Catril, Issei Kato, Antony Blinken's, Redmond Wong, Jerome Powell's, Brent, Joice Alves, Selena Li, Anisha, Susan Fenton, Jason Neely Organizations: Hargreaves, People's Bank of, National Australia Bank, REUTERS, Citi, U.S, Saxo Markets, Reserve Bank, Australia's, Bank of England, Federal, Thomson Locations: China, Asia, U.S, Beijing, People's Bank of China, Tokyo, Japan, United States, Greater China, German, London, Hong Kong, Bengaluru

The rapid rise in gilt yields has consequences for the wider economy. To some investors, gilts now increasingly look a bargain as 6% BoE interest rates appear unrealistic. Two-year gilt yields have risen by 1.1 percentage points this year, compared with a 0.3 percentage point increase for German two-year yields and 0.2 percentage points for U.S. Treasuries . Raising interest rates to 6% would "succeed in destroying demand" in the wider economy, he said. Ten-year gilt yields now pay an interest rate nearly 2 percentage points higher than the equivalent German government bond .

Persons: BoE, Liz, Britain's, Jim Leaviss, BoE Governor Andrew Bailey, gilts, We've, Mike Riddell, Riddell, Moyeen, There's, Islam, Naomi Rovnick, David Milliken, Toby Chopra Organizations: Labour Party, Bank of England, Bank of, Italy, Reuters Graphics, Allianz Global Investors, U.S, Barclays, Thomson Locations: Bank of England, Britain, British, gilts

☆ Amid economic uncertainty, it's an 'attractive time' for investment-grade bonds, financial expert says
▼ + stars: | 2023-06-15 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +1 min

Kate_sept2004 | E+ | Getty ImagesAfter the Federal Reserve's interest rate pause on Wednesday, a fixed-income expert covers what to know about bond allocations amid economic uncertainty. Experts are weighing longer bond durationIt's also time to consider adding bond duration, she said, going from "very short" to "extending duration somewhat." As interest rates change, advisors weigh so-called duration, which measures a bond's sensitivity to interest rate changes. Many advisors have shifted to shorter-duration bonds to shield portfolios from interest rate risk. Consider high-yield bondsInvestors with more appetite for risk may also consider high-yield bonds, Desai said, which typically pay a larger coupon, but have a higher default risk.

Persons: Sonal Desai, Franklin, Desai, They've Organizations: Franklin Templeton, CNBC's Financial

☆ How to shift your bond portfolio as the Fed pauses interest rate hikes
▼ + stars: | 2023-06-14 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +1 min

Couple talking to financial advisor at home Fg Trade | E+ | Getty ImagesConsider when to increase bond durationWhile it's difficult to predict future interest rate cuts, Kyle Newell, a certified financial planner and owner of Newell Wealth Management in Orlando, Florida, said he has started shifting bond allocations. When building a bond portfolio, advisors consider so-called duration, which measures a bond's sensitivity to interest rate changes. watch nowAs interest rates rose in 2022, many advisors opted for shorter-duration bonds to protect portfolios from interest rate risk. But allocations may shift, depending on future Fed policy. Look for 'areas of opportunity'As policy shifts, advisors are also looking for ways to optimize allocations amid continued economic uncertainty.

Persons: Kyle Newell, Newell, Ashton Lawrence Organizations: Newell Wealth Management, Mariner Wealth Advisors Locations: Orlando , Florida, Greenville , South Carolina

☆ 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

☆ Stocked up on short-term T-bills? Here’s why it might be time to buy longer-term bonds
▼ + stars: | 2023-05-26 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +4 min

Short-term Treasury bills have garnered investors' attention as yields pop amid the Federal Reserve's rate hiking campaign and debt ceiling tensions in Washington. This doesn't necessarily mean it's time to cut bait on your short-term bond holdings, however. Issues with longer duration are likely to see greater price fluctuation in response to changes in interest rates. The inverted yield curve also resulted in higher yields for short-term issues, but sharp price declines. Some investors built ladders — that is, a portfolio of bonds with different maturities — to take advantage of those higher yields.

Persons: Paul Olmsted, Bonds, Olmsted, we've, Brenna McLoughlin, Kevin Brady, Callie Cox, Cox Organizations: Morningstar, Treasury, Wealthstream Advisors, Wealthspire Advisors Locations: Washington

In its continued battle with inflation, the central bank on Wednesday announced another quarter percentage point interest rate increase. The latest rate increase comes after annual inflation eased to 5% in March, down from 6% in February, according to the U.S. Bureau of Labor Statistics. When building a bond portfolio, advisors consider so-called duration, which measures a bond's sensitivity to interest rate changes. I don't see us moving much higher from an interest rate perspective, so that should be good for bonds moving forward. But it may take another six months to see the results from the Fed's series of interest rate hikes, he said.

☆ Bond investors fearing recession, boost safety bets ahead of FOMC
▼ + stars: | 2023-05-01 | by ( Gertrude Chavez-Dreyfuss | ) www.reuters.com time to read: +5 min

Going long duration reflects expectations U.S. yields will fall because the Fed will be forced to cut rates. During the Fed's aggressive rate-hike phase last year, investors shortened their duration exposure. In terms of price action, U.S. 5-year yields dropped 67 bps since March, suggesting increased demand from investors. U.S. Treasuries rallied in March, pushing yields lower, as the market sought safety during the banking crisis. U.S. two-year yields, which reflect rate expectations, fell nearly 60 bps in March, the largest monthly fall since December 2007.

ORLANDO, Florida, April 5 (Reuters) - When U.S. government bonds become the epicenter of global market volatility, investors' room for taking on additional risk shrinks, sucking the oxygen out of their risk budget. The shock blindsided speculative investors who had been positioned for higher U.S. interest rates and yields. The full extent of the turmoil - hedge funds were among those who got crushed - will become clearer as first-quarter readouts emerge. A pension fund's tolerance for risk, and therefore its VaR, will be lower than a hedge fund's. "When you plug a two-year Treasury into any risk model now using past returns models, expected risk will be higher going forward," van Vliet said.

☆ Russia's Tinkoff cancels dollar Eurobond interest payment after EU sanctions
▼ + stars: | 2023-03-06 | by ( ) www.reuters.com time to read: +2 min

Tinkoff, owned by TCS Group Holding (TCSq.L), was included in the EU's tenth package of sanctions against Russia outlined last week following Moscow's military campaign in Ukraine. It has already been forced to suspend some trading in euros and had its app removed from the App Store. The Eurobond issuer, TCS Finance D.A.S, which is also part of the TCS group, said it was notified on March 3 that Tinkoff had cancelled the payment of interest, due on March 15, accrued on a $300 million perpetual bond. The issuer said interest on March 15 would be automatically cancelled as a result. Reporting by Elena Fabrichnaya and Alexander Marrow; editing by Jan Harvey and Jason NeelyOur Standards: The Thomson Reuters Trust Principles.

☆ The best fixed income deals for investors as interest rates surge higher
▼ + stars: | 2023-02-28 | by ( Michelle Fox | ) www.cnbc.com time to read: +4 min

Investors searching for income were buoyed by the move higher in the 10-year Treasury yield, but there are also some other opportunities to bring in some cash. "They can blend A with AA and AAA and you can get better yields," Weinberg explained. In fact, a good signal to buy munis is when their yields are at least 85% of corresponding Treasury yields, he said. Investors can also buy municipal bond funds to get exposure to the market. Investors can also get exposure through a diversified exchange traded fund, such as the iShares iBoxx $ Investment Grade Corporate Bond ETF .

☆ Some Treasury bills are now paying 5%. Here's what investors need to know
▼ + stars: | 2023-02-23 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +2 min

T-bill yields have been low since the Great Recession, with the exception of 2018. Currently, shorter-term Treasury yields are higher than longer-term yields, which is known as an inverted yield curve. How interest rates affect bond valuesAnother factor to consider is the current economic environment, including future moves at the Fed. Although it's expressed in years, it's different from the bond's maturity since it factors in the coupon, time to maturity and yield paid through the term. "It's always the Fed; the Fed controls short-term interest rates," said David Enna, founder of Tipswatch.com, a website that tracks Treasury inflation-protected securities and other assets.

Spreads indicate the premium investors demand to hold corporate bonds rather than safer government debt. However, some investors expect credit spreads may widen again to reflect a recession potentially ahead. Hedge funds and some asset managers short credit, meaning they are betting on a fall in a bond's price, by buying products like credit default swaps (CDS), which rise in value if the risk of a credit default event increases. Primary markets indicate there is no lack of demand for corporate bonds. They expect credit spreads to widen in the first half of this year.

☆ 2022 was the worst-ever year for U.S. bonds. How to position your portfolio for 2023
▼ + stars: | 2023-01-07 | by ( Greg Iacurci | ) www.cnbc.com time to read: +6 min

Interest rates started 2022 at rock-bottom — where they'd been for the better part of the time since the Great Recession. Bond prices move opposite interest rates — as interest rates rise, bond prices fall. Duration is a measure of a bond's sensitivity to interest rates and is impacted by maturity, among other factors. We can see why long-dated bonds suffered especially big losses in 2022, given interest rates jumped by about 4 percentage points. The traditional dynamics of a 60/40 portfolio — a portfolio barometer for investors, weighted 60% to stocks and 40% to bonds — will likely return, advisors said.

☆ Taxpayers are paying billions for the renovations and construction of NFL stadiums. Here's how
▼ + stars: | 2022-12-22 | by ( Darren Geeter | ) www.cnbc.com time to read: +4 min

These tax exemptions help lower the burden of high debt through low-interest municipal bonds used by cities and teams to pay for stadiums. Since 1913, municipal bonds have been a popular financing option for airports, roads, hospitals and schools. The loophole works by creating an artificial financing structure through tax-exempt municipal bonds. To gain access to those bonds, private companies must fail one of two tests stipulated by the Tax Reform Bill of 1986. The Las Vegas Stadium Authority financed nearly 40% of the stadium through $750 million in bonds backed by its hotel taxes.

Anyone with a TreasuryDirect account can gift savings bonds as long as the person to whom they're gifting the bonds also has a TreasuryDirect account, according to Alexander Voigt, founder and CEO at Daytradingz.com. I savings bonds, on the other hand, have 6.89% interest rates if you buy them within the same dates as the EE savings bonds. How to gift bonds to charityYou aren't limited to individuals when it comes to gifting bonds. "The buyer of the gift savings bond sees the bonds generally issued to the 'Gift Box' in their TreasuryDirect account within one business day," Voigt says. For instance, each year the US government lets you purchase a maximum of $10,000 in electronic EE savings bonds, $10,000 in I bonds, and $5,000 in paper I bonds.

☆ Bank floats $10 bln Brazilian bond plan to halt Amazon deforestation
▼ + stars: | 2022-12-19 | by ( Marc Jones | ) www.reuters.com time to read: +3 min

LONDON, Dec 19 (Reuters) - Strategists at a UK bank have proposed the idea of a super-sized $10 billion Brazilian government bond that would be specifically designed to help halt the destruction of the Amazon rainforest. Stopping deforestation of the Amazon, which absorbs vast amounts of planet-warming greenhouse gas, is part of Brazilian President-elect Luiz Inacio Lula da Silva's sweeping plan to reclaim leadership on climate change measures. Money raised via sustainability-linked debt can be used for almost any purpose. "As a reference, a 2034 Brazilian bond is currently yielding around 6.35%, making the step up/down feature potentially financially material for Brazil," Vivanco's initial outline of the plan last week said. "If Lula goes around the world selling this bond, you would have to have a reason not to be part of it," Vivanco said.

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