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The yield on the 2-year Treasury yield was flat at 4.593%. The 10-year U.S. Treasury yield fell slightly on Tuesday as investors weighed the previous day's data points and looked ahead to key inflation figures later in the week. Last week, the central bank indicated that rates will fall this year, although Chairman Jerome Powell stressed that the economic outlook remains uncertain. The Dallas Fed manufacturing index for March also fell to -14.4, below expectations, although the Chicago Fed national activity index improved. There are also several auctions on the slate, including of 17-week, 4-week and 8-week Treasury bills.

Persons: Jerome Powell, Raphael Bostic, Jim Reid, Reid Organizations: Treasury, Federal Reserve, Atlanta Fed, Deutsche, Dallas Fed, Chicago Fed, Richmond Locations: U.S

☆ How to make high interest rates work for your hard-earned savings
▼ + stars: | 2024-03-20 | by ( Jeanne Sahadi | ) edition.cnn.com time to read: +9 min

However, that won’t happen if you just let it sit in a traditional checking or savings account that yields next to nothing. High-yield online savings accountsThe average annual percentage yield on bank savings accounts was just 0.52% as of March 13, according to Bankrate. As with any bank savings rate, high-yield savings account rates can change overnight, and the bank may not alert you when it lowers it. But don’t confuse money market accounts with money market mutual funds, which invest in short-term, low-risk debt instruments. Unlike money market deposit accounts, money market mutual funds are not insured by the FDIC.

Persons: ”, Ted Rossman, ” Rossman, Ken Tumin, Schwab, you’d, Tumin, Doug Ornstein, Andy Smith, Ornstein, doesn’t, ” Smith Organizations: New York CNN, Bankrate, JPMorgan Chase, Bank of America, Fidelity, TIAA Wealth Management, FDIC, Securities Investor Protection Corp, Edelman, AAA Locations: New York, Wells Fargo, United States

☆ How Hedge Funds Are Betting on Electricity and the Changing Power Grid
▼ + stars: | 2024-03-05 | by ( Alex Morrell | Bradley Saacks | ) www.businessinsider.com time to read: +19 min

A onetime commodities backwater, congestion trading has become a growing business in recent years as the demand for electricity and volatility on the power grid in the US has soared. The financial category, which includes specialized power-trading companies, banks, hedge funds, and large proprietary trading firms, dominates the market, in part because the physical power firms typically operate in only one or two regions. He launched three congestion trading teams for the firm, including in California and Texas after those states introduced congestion trading in 2008 and 2010, respectively. Citadel, along with Susquehanna International Group and Tower Research, has been involved in FTR trading since the market's infancy. Volatility has been increasing on the power grid, in part because of changing weather patterns, Jeev added.

Persons: Kumar Jeev, Jane Street, Richard Roseblade, who's, There's, Roseblade, Bill Clark, Jeev, DC Energy's Tyler Kuhn, DRW, California Al Seib, Brevan Howard, Jane, Stephanie Staska, Staska, couldn't, Joe Biden's, It's, Meredith Angwin, Angwin Organizations: Business, Capital, Midwest, Citadel, Tower Research, Yes Energy, Energy, Anadolu, Getty, Federal Energy Regulatory Commission, FERC, Nasdaq, York Stock Exchange, Nvidia, Johns Hopkins University, DC Energy, Wayfair, Squarepoint, Appian, Boston Energy, Susquehanna International Group, DC, Bloomberg, Commodities, Traders, Wall Street, Workers, GreenHat Energy, JPMorgan, Hill Energy Resource & Services, P, Grid, & $ Locations: Wall, East Coast, DRW, Susquehanna, FTRs, New York, Canada, Texas, Virginia, California, Berlin, Chicago, Oregon, California Al, Ukraine, Russian, Uri, Northern Virginia

☆ Warren Buffett's $168 billion cash pile signals he expects stocks to slide and a recession to strike, says top economist Steve Hanke
▼ + stars: | 2024-02-28 | by ( Theron Mohamed | ) www.businessinsider.com time to read: +3 min

Warren Buffett's company boosted its cash pile by $60 billion in 15 months to a record $168 billion. The investor may be expecting stocks to dive and a recession to hit, top economist Steve Hanke said. Buffett hit out at rank speculation and gambling on stocks, and Hanke voiced similar concerns. AdvertisementWarren Buffett's massive war chest signals that he expects stocks to tumble and the economy to tank, Steve Hanke says. Hanke echoed Buffett's complaint in his latest shareholder letter about the rise of reckless speculation and casino-style gambling on stocks.

Persons: Warren, Steve Hanke, Buffett, Hanke, —, Berkshire Hathaway, Johns Hopkins, Ronald Reagan, Goldman Sachs, Davidson, they've Organizations: Service, Johns, Toronto Trust, Buffett, Electric, Dow Chemical, Harley Locations: Berkshire, Toronto Trust Argentina

☆ A 4,400,000% return and a $168 billion cash pile. Here are 6 juicy nuggets from Warren Buffett's new letter.
▼ + stars: | 2024-02-26 | by ( Theron Mohamed | ) www.businessinsider.com time to read: +5 min

Berkshire is making bank on bonds, and its $168 billion cash pile is worth more than Uber or Nike. Assets aplentyBerkshire held $561 billion of net assets at the end of December, a 19% increase from a year earlier. Berkshire's $1 trillion-plus of assets included $354 billion of stocks, $178 billion of property and equipment, $130 billion of Treasury bills, and $24 billion of inventories. That figure is larger than the value of General Electric ($167 billion), Comcast ($166 billion), Uber ($162 billion), Nike ($160 billion), Walmart ($159 billion), American Express ($156 billion), or Pfizer ($155 billion). The upshot is that on December 31, Berkshire held $354 billion of stocks, and $168 billion of cash and other short-term investments — a ratio of nearly 2:1.

Persons: Warren Buffett's, Buffett, —, Warren Buffett, you'd, Cash, Treasuries, Charlie Munger Organizations: Berkshire Hathaway's, Nike, Service, Berkshire Hathaway, Berkshire, aplenty, Berkshire's, Electric, Comcast, Walmart, American Express, Pfizer, Federal Reserve Locations: Berkshire, aplenty Berkshire, Omaha

☆ Where do Treasury yields go from here? Morgan Stanley's Jim Caron weighs in
▼ + stars: | 2024-02-22 | by ( Weizhen Tan | ) www.cnbc.com time to read: +3 min

Treasury yields shot up last year, and investors flocked to allocating to cash which have yielded around 5% or even more. Morgan Stanley Investment Management's Jim Caron believes the 10-year Treasury yield is very likely to hover between 5% and 5.5%. Caron, who is chief investment officer at its Portfolio Solutions Group, explained that historically, 10-year Treasury yields are "usually a good match" for nominal gross domestic product. How rising yields affect stocks But are rising yields bad for stocks, as commonly thought? "If yields are rising because the economy is running hot, and data and labor markets are stronger, the rising yields need not negatively affect stocks."

Persons: Morgan Stanley, Jim Caron, Caron, CNBC's Organizations: Treasury, U.S . Federal, Morgan, Morgan Stanley Investment, Solutions Locations: U.S

☆ Why do people keep uninsured money in banks?
▼ + stars: | 2024-02-12 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +10 min

Somehow, the same issue plaguing last year’s failed banks is back in focus at the latest bank in crisis: massive loads of uninsured deposits. To be sure, the risk isn’t anywhere close to that of the banks that failed last year: About 94% of domestic deposits at Silicon Valley Bank were uninsured and 90% of Signature Bank’s deposits were uninsured, according to the Federal Reserve. The money is guaranteed by the Federal Deposit Insurance Corporation, which is funded by fees paid by major US banks. About 40% of all money in the US, or $8 trillion, sitting in banks is uninsured, said Lawrence White, a professor at New York University’s Stern School of Business. “It also risks violating the FDIC’s statutory requirement to resolve failed banks and protect insured depositors in the least expensive way possible.”Sometimes, he said, rescuing those uninsured depositors may be the cheapest way to protect insured depositors at banks.

Persons: NYCB, Brian Snyder, James Lee, David Wessel, Lawrence White, University’s, Banks, Ting Shen, ”, Kori Suzuki, JPMorgan Chase, Michael Ohlrogge, Maxine Waters, Elizabeth Warren, “ Organizations: New, New York CNN, New York Community Bancorp, Investors, Silicon Valley Bank, Federal Reserve, Bank, Xinhua, Federal Deposit Insurance Corporation, FDIC, Reuters, Brookings Institution, International Monetary Fund, University’s Stern School of Business, US Treasury, Bloomberg, Getty, Securities and Exchange Commission, Valley Bank, Signature Bank, JPMorgan, Bank of America, Citigroup, First Republic Bank, New York University’s School of Law, Financial Services, Banking Committee, CBS, Bank Coalition of America Locations: New York, Silicon, United States, New, ”, Washington , DC, San Francisco , California, Sen

☆ Berkshire Hathaway topped $600,000 a share last week, aiming at $1 trillion market value
▼ + stars: | 2024-02-11 | by ( Yun Li | ) www.cnbc.com time to read: +3 min

The swift rally has pushed Berkshire's market cap above $863 billion as of Friday's close, making it the seventh most valuable company in the U.S. Road to 600k It took Berkshire Class A shares about two years to go from $500,000 to $600,000. In terms of market cap weighting and earnings contribution to the S & P 500, Berkshire is now the best candidate to join the crowd, Strategas said. High price tag Berkshire's original Class A shares carry one of the highest price tags on Wall Street . Berkshire's Class B shares have gained more than 11% this year and also hit an intraday record of $399.15 earlier this week.

Persons: Warren Buffett's Berkshire Hathaway, Tesla, Tesla —, Eli Lilly, Strategas, Buffett, Ben Graham Organizations: U.S, BNSF Railway, Geico Insurance, U.S ., PetroChina, Alleghany, Occidental Petroleum, Microsoft, Apple, Nvidia, Tesla, Strategas Securities, Broadcom Locations: Warren Buffett's, U.S, Omaha, Berkshire, Saudi Aramco

☆ The inventor of the market's most famous recession indicator says 3 factors will ensure a coming downturn isn't too painful
▼ + stars: | 2024-02-07 | by ( Filip De Mott | ) www.businessinsider.com time to read: +3 min

The inverted yield curve means that a recession is still likely, the indicator's inventor wrote this week. NEW LOOK Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. AdvertisementThe inverted yield curve has been flashing red for 15 months, but don't think that ongoing economic strength makes it a false signal, Campbell Harvey wrote in a Research Affiliates note. "The yield curve indicator suggests growth will substantially slow in 2024. On the business side, past experience with the inverted yield curve has led entities to take preventive action when Treasury rates flip.

Persons: —, Campbell Harvey, Harvey Organizations: Service, Duke University, Federal Reserve, Fed

☆ Investors are unlikely to dump cash in favor of locking in bond yields, JPMorgan says
▼ + stars: | 2024-02-02 | by ( Michelle Fox | ) www.cnbc.com time to read: +6 min

The inflows this year come at a time when, historically, money funds see seasonal outflows. Ho calculates about $5.5 trillion of the assets sitting in money market funds are core liquidity for companies and cash savings for retail investors. In fact, the most recent push into money market funds is coming from institutional investors, according to the ICI. Assets of institutional money market funds increased by $33.06 billion to $3.65 trillion, while retail money market funds rose by $8.62 billion to $2.35 trillion, the organization found. That's because yields on money market funds lag behind Fed moves.

Persons: Teresa Ho, Ho, Powell, Shelly Antoniewicz, Jerome Powell, AllianceBernstein, Monika Carlson, Carlson, Amy Arnott, Arnott, Rob Williams, Charles Schwab Organizations: JPMorgan, Investment Company Institute, Federal Reserve, CNBC, ICI, Fed, Treasury, Morningstar, Charles, Charles Schwab Center, Financial Research Locations: Treasurys

☆ Tax season is underway. Here’s what investors should know to prepare
▼ + stars: | 2024-02-01 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +6 min

Tax filing season officially started on Monday, and investors could pay the price following last year's stock market bonanza. Meanwhile, investors collected yields exceeding 5% in money market funds, certificates of deposit and high yield savings accounts. In New York, the top income tax rate is 10.9%, and it's 13.3% in California. Vanguard's New York Municipal Money Market Fund (VYFXX) has a 7-day SEC yield of 4.25% and an expense ratio of 0.16%. Fidelity offers the California Municipal Money Market Fund (FSPXX) , which has a 7-day yield of 3.54% and an expense ratio of 0.3%.

Persons: Tim Steffen, Brenna McLoughlin, you've, McLoughlin, Vanguard's, Sam Nofzinger, Steffen, it's, There's Organizations: Baird, Wealthstream Advisors, York Municipal Money Market Fund, SEC, Fidelity, Money Market Fund, Public Locations: Milwaukee, New York, California, York, –

☆ Where to lock down high interest rates for your savings
▼ + stars: | 2024-01-31 | by ( Jeanne Sahadi | ) edition.cnn.com time to read: +8 min

High-yield online savings accountsThe average annual percentage yield on bank savings accounts was just 0.57% on January 30, according to a Bankrate survey. But many online FDIC-insured banks are still offering 5% or more on their high-yield savings accounts. As with any bank savings rate, high-yield savings account rates can change overnight, and the bank may not alert you when it lowers it. But don’t confuse money market accounts with money market mutual funds, which invest in short-term, low-risk debt instruments. Unlike money market deposit accounts, money market mutual funds are not insured by the FDIC.

Persons: Doug Ornstein, Schwab, “, ”, Greg McBride, Ken Tumin, you’d, Tumin, Wells Fargo, Andy Smith, Ornstein, doesn’t, ” Smith Organizations: New York CNN, Federal Reserve, JPMorgan Chase, Bank of America, TIAA Wealth Management, FDIC, Securities Investor Protection Corp, Fidelity, DepositAccounts.com, Treasury, Edelman, AAA Locations: New York, United States

☆ Treasury yields fall ahead of economic growth numbers
▼ + stars: | 2024-01-25 | by ( Elliot Smith | ) www.cnbc.com time to read: +1 min

ET, the yield on the benchmark 10-year Treasury note dropped 2.3 basis points to 4.1549%, while the yield on the 30-year Treasury bond slid 2.7 basis points to 4.3851%. U.S. Treasury yields fell on Thursday morning as markets await a first estimate of fourth-quarter economic growth. Wall Street will be trying to ascertain what that means for American economic growth in 2024, while the Federal Reserve will be taking the figure into account as it considers its next monetary policy move. A second major data point is due Friday in the form of December's personal consumption expenditures price index, the Fed's preferred inflation gauge. Auctions will be held Thursday for $90 billion each of 4-week and 8-week Treasury bills, along with $41 billion of 7-year notes .

Organizations: Treasury, U.S, U.S . Department, Federal Reserve Locations: U.S

☆ Treasury yields pull back as big economic data releases come into view
▼ + stars: | 2024-01-24 | by ( Elliot Smith | ) www.cnbc.com time to read: +2 min

ET, the yield on the benchmark 10-year Treasury note was down by around 3.7 basis points at 4.1050% and the yield on the 30-year Treasury bond slipped 3.7 basis points to 4.3418%. U.S. Treasury yields were lower on Wednesday morning as investors brace themselves for two key pieces of economic data in the second half of the week. Two significant pieces of economic data are on the slate this week: a preliminary fourth-quarter gross domestic product growth figure is due on Thursday, followed by the Commerce Department's closely watched personal consumption expenditures price index for December on Friday. Both data points will inform the Federal Reserve as it maps out when and by how much to begin cutting interest rates, which will be a key factor in determining the path of markets and the economy this year. Auctions will be held for $60 billion of 17-week Treasury bills, $61 billion of 5-year notes and $28 billion of 2-year FRNs (floating-rate notes).

Persons: Jim Reid, Bullard, Reid, that's Organizations: Treasury, U.S, Commerce, Federal Reserve, Deutsche Bank's, Global, Bank of Canada, European Central Bank, St Louis Fed, PMI

☆ Treasury yields fractionally higher ahead of key data releases
▼ + stars: | 2024-01-23 | by ( Elliot Smith | ) www.cnbc.com time to read: +1 min

ET, the yield on the benchmark 10-year Treasury note was around 1.7 basis points higher at 4.1109% while the yield on the 30-year Treasury bond was up just over 1 basis point at 4.3284%. U.S. Treasury yields nudged slightly higher on Tuesday morning, as market participants await the release of key economic data points later in the week. Investors are trying to gauge when the Federal Reserve will begin cutting interest rates, which will be a key determinant of the trajectory for markets and the economy this year. Despite the uncertain rate outlook, risk-on sentiment remained robust on Monday, as the Dow Jones Industrial Average and the S&P 500 both notched all-time highs. Auctions will be held Tuesday for $46 billion of 52-week Treasury Bills and $60 billion of 2-year notes .

Persons: that's, it's, Guillermo Felices, CNBC's Organizations: U.S, Treasury, Investors, Federal Reserve, Commerce, Dow Jones Industrial, Global Investment, Treasury Bills

☆ Treasury yields retreat ahead of big week for economic data
▼ + stars: | 2024-01-22 | by ( Elliot Smith | ) www.cnbc.com time to read: +1 min

The yield on the benchmark 10-year Treasury note was down around 2 basis points at 4.1263% while the yield on the 30-year Treasury bond slid around 2.5 basis points to 4.3285. U.S. Treasury yields pulled back on Monday morning as investors geared up for another big week of economic data . Two significant pieces of economic data are on the slate this week, with a preliminary fourth-quarter GDP growth figure due on Thursday and the Commerce Department's closely-watched PCE price index for December out Friday. Chicago Fed President Austan Goolsbee told CNBC on Friday that investors should be watching this data point when trying to plot the Fed's rate path. Auctions will be held Monday for $77 billion of 13-week Treasury bills and $70 billion of 26-week bills.

Persons: Dow Jones, Austan Goolsbee Organizations: Treasury, Federal Reserve, Commerce, Chicago Fed, CNBC

☆ Where to invest $50,000 with Treasury yields rising again
▼ + stars: | 2024-01-16 | by ( Lisa Kailai Han | ) www.cnbc.com time to read: +8 min

The 10-year Treasury yield started the new year trading around 3.8% after a steep decline in late 2023. Against this backdrop, CNBC Pro asked three strategists and money managers how they would allocate $50,000 with yields rising again. Specifically, he recommended bills with a three- to six-month maturity, which investors can gain exposure to through exchange-traded funds such as the Vanguard Short-Term Treasury ETF (VGSH) or SPDR Portfolio Short Term Treasury ETF (SPTS) . Exchange-traded funds that offer exposure to these assets include the iShares 20 Plus Year Treasury Bond ETF (TLT) and Vanguard Intermediate-Term Corporate Bond ETF (VCIT) . Invest in dividend-growing value stocks Newton Investment Management's John Bailer recommended investors solely allocate into value stocks with sustainable and growing dividends.

Persons: Kumar, VGSH, VCIT, John Bailer, JPMorgan Chase, They've, they've, Bailer, Northrop Grumman, James Abate, Abate, Johnson, Geoff Martha, Colgate's Organizations: Treasury, Nasdaq, Dow Jones, CNBC Pro, Sri, Kumar, CNBC, AAA, Exchange, Treasury Bond ETF, Vanguard, Stock Market, U.S, Bloomberg, Newton Investment, JPMorgan Chase, JPMorgan, Northrop, Asset Management, Johnson, Colgate, Palmolive Locations: Bailer's

☆ Investors poured cash into these fixed income ETFs in 2023
▼ + stars: | 2024-01-09 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +6 min

The Federal Reserve's monetary policy set the tone for the fixed income world in 2023 – right down to which exchange traded funds investors picked to take advantage of higher interest rates. Bond yields have an inverse relationship to their prices, so that when prices decline, yields rise and vice versa. The Vanguard Long-Term Treasury ETF (VGLT) was another favorite of investors, with about $7.3 billion in net flows in 2023. Indeed, those strategies proved popular with investors in 2023, as the Vanguard Total Bond Market ETF (BND) and iShares Core U.S. Aggregate Bond ETF (AGG) were ETFs with the second and third highest net flows, per Morningstar.

Persons: It's, Paul Olmsted, Matthew Bartolini, Olmsted, Morningstar, –, it's, BND, AGG Organizations: Investors, Bloomberg Finance, State Street Global Advisors, Morningstar, SPDR, SPDR Americas Research, Street Global Advisors, State, Treasury Bond ETF, Bloomberg, SGOV, SEC, Treasury, Fed, Vanguard, Bond Market, Core, Aggregate Bond Locations: SPDR Americas, Central

☆ Investors will soon be able to buy slices of bonds. How to decide if this is the right move for you
▼ + stars: | 2024-01-05 | by ( Michelle Fox | ) www.cnbc.com time to read: +4 min

Investors will be able purchase pieces of corporate bonds, Treasurys and eventually, municipal bonds. The idea is to open up opportunities to investors who don't want to spend upward of $1,000 on single corporate bonds. While retail investors can buy individual corporate bonds through brokerages, they often opt for mutual funds or exchange-traded funds, which offer baskets of diversified bond securities. The iShares Broad USD Investment Grade Corporate Bond ETF (USIG) , for instance, tracks the ICE BofA U.S. Corporate Index. For corporate bonds, he suggests looking at actively managed funds, particularly for noninvestment grade and municipal bonds.

Persons: Sam Nofzinger, Nofzinger, Chuck Failla, I'm, Tom Kaiser, Failla Organizations: Public, Corporate, ICE, Sovereign Financial Group, Brock Investment Advisors, Apple, Microsoft, BlackRock Locations: brokerages, TreasuryDirect

☆ This income-paying asset could be poised to rise in 2024 as interest rates cool
▼ + stars: | 2024-01-02 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +6 min

With interest rates expected to come down in 2024, real estate — a sector beloved for its steady income payments — could see upside in the new year. "When rates are low, a lot of income-oriented investors see that REIT dividend as very attractive, and they are willing to take the risks associated with equity investment to have this dividend payment." Jefferies is neutral on the office REIT sector but has raised its rating on Boston Properties to buy from hold. The senior housing occupancy rate was 84.4% in the third quarter of 2023, according to the National Investment Center for Seniors Housing & Care . That's up more than 6 percentage points from the pandemic low of 77.8%, but it's still off from the pre-pandemic occupancy rate of 87.1%.

Persons: REITs, Kevin Brown, Jefferies, Peter Abramowitz, Morningstar's Brown, it's, Brown, JPMorgan's Anthony Paolone, Ventas, — CNBC's Michael Bloom, Chris Hayes Organizations: Federal Reserve, Treasury, Boston Properties, Boston, National Investment Center, Seniors Housing & Care, Realty Locations: U.S, Boston, Friday's

☆ Investors seeking a high-quality bond fund can find one in this 'solid' offering, says Morningstar
▼ + stars: | 2023-12-15 | by ( Michelle Fox | ) www.cnbc.com time to read: +4 min

By contrast, the other intermediate-term fund on the Morningstar FundInvestor 500 list, PIMCO Investment Grade Credit Bond fund, has more than 10% in high yield, according to Morningstar. "That's why having that exposure to investment grade corporate bonds … at this point in the cycle is a tremendous value," he added. Meanwhile, the assets in the fund that are high yield are what Narayanan calls high quality, "mispriced securities." Those are the types of names that have recently been upgraded back into the investment grade space," he said. "We tend to use that capacity in high yield to add to those types of issuers before the upgrade, anticipating the upgrade."

Persons: Morningstar, Paul Olmsted, Olmsted, Arvind Narayanan, Narayanan, VFIDX Organizations: Vanguard's, Fund, SEC, Morningstar, Oppenheimer, Vanguard, Credit Bond, CNBC Fed Survey, Fitch, Occidental Petroleum, Federal Reserve Locations: Detroit, Morningstar, Treasurys, Occidental

☆ Here’s where to invest your cash to save on taxes in 2024
▼ + stars: | 2023-12-04 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +1 min

"While any additional income earned from higher yields is taxed at a progressively higher rate, IRMAA applies as a surcharge," he said. "This means that even $1 of additional income could trigger higher premiums." With terms ranging from one month to one year, most Treasury bills, known as T-bills, are currently paying well over 5%, as of Dec. 4. However, T-bills offer a tax benefit over products like high-yield savings, certificates of deposit or money market funds: no state or local taxes on earnings. T-bill interest is still subject to federal income taxes.

Persons: Eric Audras, Mullikin, Catherine Valega Organizations: PhotoAlto, Getty, Medicare, Green Bee Locations: Boston, TreasuryDirect

☆ Investors piled cash into money market mutual funds in 2023 — and now could see a higher tax bill
▼ + stars: | 2023-12-01 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +1 min

If you funneled cash into money market mutual funds in 2023 amid rising interest rates, you may have a surprise tax bill in April, experts say. Investors and institutions have piled $5.84 trillion into money market mutual funds, as of Nov. 29, according to the Investment Company Institute, and many funds are paying well over 5%. "With pennies earned in 2022 on cash assets, the tax bill was negligible," said certified financial planner Robert Schultz, senior partner at NWF Advisory Group in Encino, California. Here's whyWith yields closely tied to the federal funds rate, money market funds — different than money market deposit accounts — are mutual funds that typically invest in shorter-term, lower-credit-risk debt, such as Treasury bills. Many investors are stockpiling money into these funds due to "fear in the stock market" and many are nervous to spend cash, according to CFP Colin Day, an enrolled agent at Correct Capital in St Louis.

Persons: Robert Schultz, Colin Day Organizations: Investment Company Institute, NWF, Finance, Stanford Locations: Encino , California, St Louis

☆ Turn to this high-quality income play for the new year, Wells Fargo Investment Institute says
▼ + stars: | 2023-11-23 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +4 min

Investors who hope to generate portfolio income while recession fears ramp higher can seek some safety in municipal bonds. Wells Fargo Investment Institute recently issued its fixed income guidance for 2024, forecasting "higher for longer" rates across the yield curve as the Federal Reserve remains vigilant to bring down inflation. Municipal bonds offer a combination of characteristics that appeal to investors: General obligation bonds are backed by the revenue of the municipality issuing them. "Going into a slowdown, you anticipate rates to fall," said Brian Rehling, head of global fixed income strategy at Wells Fargo Investment Institute. The top marginal income tax rate is 13.3% in California and well over 10% in New York and New Jersey.

Persons: Brian Rehling, Jennifer Johnston, Franklin Templeton, Johnston Organizations: Wells, Wells Fargo Investment Institute, Federal Reserve, Fargo Investment Institute, AAA, Muni Bond ETF, Vanguard, Bond, Fed, New York Life Investments, Investors, York State, Metropolitan Transportation Authority Locations: Wells Fargo, Fargo, New, California, New York, New Jersey, York

☆ Investors can get a 5.6% yield with this 'first-rate' ultrashort bond ETF
▼ + stars: | 2023-11-22 | by ( Michelle Fox | ) www.cnbc.com time to read: +6 min

As investors hunt for yield, many are turning to actively managed exchange-traded funds focused on bonds, like Pimco's Enhanced Short Maturity Active ETF . The fund, which has a 5.6% 30-day SEC yield, is a "a first-rate ultrashort ETF," Morningstar senior analyst Paul Olmsted wrote in August. Trading under the ticker symbol MINT, the ETF holds fixed income securities with durations of no more than one year. In fact, investors flooded into the fund in October, making it the actively managed bond ETF with the highest inflows last month, according to FactSet. Investors can capture that higher yield on the short end of the yield curve, Schneider said.

Persons: Paul Olmsted, Morningstar, Jerome Schneider, Pimco's, Schneider, FactSet, Matthew Bartolini, It's, Treasurys —, who's Organizations: SEC, Morningstar, MINT, Street Global Advisors, Research, Federal Reserve, Treasury, Federal, Bear Stearns Locations: Pimco

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