Latest news with #fixedincome
Bloomberg
3 days ago
- Business
- Bloomberg
US Treasuries Set For First Monthly Loss of 2025
Vonnie Quinn highlights the market-moving news you need to know. Today's guests: Goldman Sachs Asset Management Head of Multi Sector Fixed Income Lindsay Rosner, Charles Schwab Fixed Income Strategist Collin Martin, BNP Paribas Head of US Credit Strategy Meghan Robson, and Barclays Head of US Credit Strategy Dominque Toublan. (Source: Bloomberg)
Forbes
6 days ago
- Business
- Forbes
6 Of The Best Fixed Income Funds To Diversify Your Investments
Fixed-income investments are in the spotlight, thanks to strong yields and prevailing stock market uncertainty. A solid income stream paired with relative price stability is an appealing combo, and investors are taking advantage. If you'd like to increase your allocation to fixed income, here are six solid funds to consider. Fixed-income assets provide important diversification for well-rounded portfolios. The best fixed-income investments can deliver predictable income without wild price swings. Alongside growth-oriented equity holdings, fixed-income securities have a stabilizing effect. Learn more about diversifying investments. Funds provide easy access to that fixed-income exposure. They also deepen a portfolio's diversification because they hold multiple securities—often with varying maturities and issuers. The best fixed-income investments below were identified by screening mutual funds and ETFs for these criteria: Although the universe of funds screened included mutual funds, the top funds meeting these criteria were all ETFs. The table below introduces six fixed-income ETFs with intermediate-term maturities, reasonable expense ratios and strong track records relative to peers. They are listed from lowest to highest expense ratio. The SPDR Portfolio Intermediate Term Corporate Bond ETF tracks the Bloomberg Intermediate US Corporate Index. The holdings are fixed-rate debts, each with an outstanding par value of $300 million or more, issued by industrial, utility and financial businesses. SPIB holds nearly 5,000 debt securities, with the top holding comprising just 0.23% of the portfolio. Issuers include Goldman Sachs, Bank of America, Duke Energy and Amazon. All holdings are investment-grade quality, with an emphasis on A1 through A3 credit ratings. A1 through A3 are the fifth, sixth and seventh highest ratings on Moody's scale. They are considered upper-medium grade, which implies low credit risk but warrants a premium vs. the highest-rated AAA issues. This supports the fund's competitive yield of 4.95%. SPIB has the longest average maturity of the funds on this list, at 4.88 years. SPIB provides monthly distributions. Since early 2024, the payouts have ranged from $0.10 to $0.12 per share. VanEck IG Floating Rate ETF tracks the MVIS US Investment Grade Floating Rate Index. The index includes investment-grade, corporate-issued, floating-rate notes. FLTR provides exposure to floating-rate debt, which is appealing if you expect interest rates to rise. Because the rates reset periodically, the holdings should not lose value when interest rates increase—nor will they appreciate if rates fall. The securities in the FLTR portfolio are denominated in U.S. dollars, but the issuers are all over the world. The international exposure to the United Kingdom, Australia, Canada, Japan and others can extend your portfolio's diversification. On the other hand, FLTR has a heavy concentration in financials, which could be a disadvantage depending on how else you're invested. FLTR pays distributions monthly. Over the past 18 months, the payouts have ranged from $0.09 to nearly $0.14. iShares 3-7 Year Treasury Bond ETF invests in intermediate-term debts issued by the U.S. government. This portfolio is more conservative than funds holding corporate debt. Moody's recently downgraded the U.S. government's credit rating from the highest AAA rating to AA1, citing the growing debt balance and high interest payment ratios. Standard & Poor's and Fitch, the other two credit agencies, downgraded the U.S. government from AAA in 2011 and 2023, respectively. Even so, IEI provides a good yield and slightly higher credit quality than many corporate debt portfolios. The effective duration of nearly five years ensures some stability in interest income, though this portfolio would be subject to price changes driven by interest rates. IEI pays distributions monthly, in amounts that have recently ranged from $0.28 to $0.34 per share. Janus Henderson AAA CLO ETF invests in investment-grade collateralized loan obligations (CLO). CLOs are securitized bank loan portfolios, which include floating-rate loans made to companies with credit ratings below investment grade. The loans have collateral, which provides some security, and the portfolio is divided into groups, called tranches, of varying risk levels. The AAA tranche is the safest. AAA investors receive payments first and absorb losses last. JAAA provides exposure to higher-yield, floating-rate CLOs. This fund is a diversification play. CLOs do not have the downside risk of traditional fixed-income securities because their rates adjust to market conditions. But due to the complexity of these assets and the lower quality of the underlying loans, their yield can be high. The presence of collateral and the priority of the AAA tranche mitigates some of the risks. JAAA launched in 2020 and has since produced a three-year average annual NAV return of 5.9%. The fund makes monthly distributions that have recently ranged from $0.20 to $0.27, producing a 30-day yield of 5.48%. Eaton Vance Short Duration Income ETF invests in U.S. Treasury securities, corporate bonds, mortgage-backed securities and asset-backed securities with an average duration of three years or less. EVSD is an actively managed and diversified portfolio of fixed-income securities with short to intermediate maturities. The portfolio prioritizes securities in the lower end of the investment-grade range—ratings of A1 through A3 and Baa1 through Baa3 on Moody's scale. About 30% of the EVSD portfolio is asset-backed, mortgage-backed and commercial mortgage-backed securities. There is also a small position in higher-yield, speculative bonds. The inclusion of varying debt types and credit qualities helps the fund reach its stated goal of above-average returns over three to five years. EVSD pays monthly distributions that have fluctuated from $0.18 to $0.24 per share over the past 18 months. iShares CMBS ETF invests in U.S.-issued, investment-grade, commercial mortgage-backed bonds. The underlying mortgages typically finance office buildings, shopping centers, factories, hotels and apartment buildings. As with CLOs, the mortgages are grouped by their risk level to create multiple tranches with different risk levels and yields. Commercial mortgage-backed securities pay higher yields than Treasury or corporate bonds and have different risk profiles. They are tied to commercial real estate, since it is the underlying collateral for the loans. This ETF's portfolio is primarily AAA- and AA-rated securities, at the lower end of the risk spectrum. It provides a nice entry point for investors who want to raise their overall fixed-income yield by diversifying into commercial mortgage-backed securities. CMBS pays monthly distributions that have varied from $0.11 to $0.14 over the past 18 months. Bottom Line Fixed-income funds can deliver income, stability and diversification with varying degrees of risk. They can also provide exposure to more complex market segments that were once only available to institutional investors, such as CLOs and commercial mortgage-backed bonds. If you are new to fixed-income investing, opt for simpler funds that prioritize credit quality. You can always expand your exposure for higher yields later, as you gain investing confidence. Fixed-income funds are a great choice for novice investors. These funds can provide income and stability, which can provide a stabilizing effect on portfolios with heavy stock exposure. There are thousands of fixed-income mutual funds. Some specialize in a market segment, like tax-free municipal bonds or corporate bonds, while others have a diversified strategy. Fixed-income funds commonly pay monthly distributions.
Yahoo
25-05-2025
- Business
- Yahoo
Eastern River to Introduce Bond ETFs and Launch a New Fixed-Income Fund to Broaden Investment Offering
New offerings aim to enhance access to diversified fixed-income strategies for private and wholesale investors. ADELAIDE, AUSTRALIA / / May 25, 2025 / Eastern River, a leading Australian bond brokerage, is set to expand its investment platform with the introduction of Bond Exchange-Traded Funds (ETFs) and the upcoming launch of a new fixed-income fund. These developments represent a significant step forward in improving access to institutional-grade bond strategies for both private and wholesale investors. The addition of Bond ETFs will provide clients with an efficient and liquid route to diversified fixed-income exposure, encompassing government, corporate, and ESG-focused debt instruments. This move reflects Eastern River's continued commitment to delivering cost-effective, transparent solutions in a dynamic yield environment. "We are introducing Bond ETFs to offer clients a more flexible and streamlined means of accessing the fixed-income market," said Mrs Sally Peters, Public Relations Officer at Eastern River. "The new fixed-income fund will further support this initiative by offering a stable, actively managed option focused on capital preservation and consistent yield." Scheduled to launch in Q4, the fund is designed to meet growing demand for reliable income amid ongoing interest rate uncertainty. It will leverage Eastern River's proven expertise in credit research, yield targeting, and risk management. Both the Bond ETFs and the new fund will be managed within Eastern River's active oversight framework, which prioritises downside protection and disciplined portfolio construction. Clients will benefit from improved market access, enhanced liquidity, and tailored strategies to suit evolving market conditions. These initiatives reinforce Eastern River's position as a forward-thinking bond specialist, dedicated to helping investors navigate today's market with clarity and confidence. For more information on Eastern River's forthcoming Bond ETF range and fixed-income fund, visit or contact media@ SOURCE: Eastern River Pty Ltd View the original press release on ACCESS Newswire
Associated Press
25-05-2025
- Business
- Associated Press
Eastern River to Introduce Bond ETFs and Launch a New Fixed-Income Fund to Broaden Investment Offering
New offerings aim to enhance access to diversified fixed-income strategies for private and wholesale investors. ADELAIDE, AUSTRALIA / ACCESS Newswire / May 25, 2025 / Eastern River, a leading Australian bond brokerage, is set to expand its investment platform with the introduction of Bond Exchange-Traded Funds (ETFs) and the upcoming launch of a new fixed-income fund. These developments represent a significant step forward in improving access to institutional-grade bond strategies for both private and wholesale investors. The addition of Bond ETFs will provide clients with an efficient and liquid route to diversified fixed-income exposure, encompassing government, corporate, and ESG-focused debt instruments. This move reflects Eastern River's continued commitment to delivering cost-effective, transparent solutions in a dynamic yield environment. 'We are introducing Bond ETFs to offer clients a more flexible and streamlined means of accessing the fixed-income market,' said Mrs Sally Peters, Public Relations Officer at Eastern River. 'The new fixed-income fund will further support this initiative by offering a stable, actively managed option focused on capital preservation and consistent yield.' Scheduled to launch in Q4, the fund is designed to meet growing demand for reliable income amid ongoing interest rate uncertainty. It will leverage Eastern River's proven expertise in credit research, yield targeting, and risk management. Both the Bond ETFs and the new fund will be managed within Eastern River's active oversight framework, which prioritises downside protection and disciplined portfolio construction. Clients will benefit from improved market access, enhanced liquidity, and tailored strategies to suit evolving market conditions. These initiatives reinforce Eastern River's position as a forward-thinking bond specialist, dedicated to helping investors navigate today's market with clarity and confidence. For more information on Eastern River's forthcoming Bond ETF range and fixed-income fund, visit or contact [email protected]. SOURCE: Eastern River Pty Ltd press release
Yahoo
23-05-2025
- Business
- Yahoo
MoneyMasters Podcast 5-22-25- How Bond Yields Are Reacting to China's Trade War
Is the bond market flashing a warning that most investors are ignoring? In this episode of the MoneyShow MoneyMasters Podcast, Crossmark Global Investment's chief market strategist Victoria Fernandez breaks down what the Moody's downgrade of US debt really means — and how tariffs, inflation, and political uncertainty are reshaping the fixed income landscape. To get a FREE copy of the complete MoneyShow 2025 Top Picks Report, click HERE.) You'll hear how Chinese trade tensions are impacting global yields, why bond market volatility is back, and what sectors investors should be cautious — or bullish — on right now. Victoria also unpacks the disconnect between soft data and hard data in the US economy and why the labor market may be weaker than it looks. Plus, she shares actionable insights on positioning in Treasuries, corporate bonds, and stocks — and flags key tail risks for the back half of 2025. See also: Why and How to Track Sovereign Wealth Funds Amid Global Power Struggles If you're watching interest rates, trading bonds, or trying to navigate the market's next move — don't miss this one. One last thing: Victoria will be joining us at the 2025 MoneyShow Masters Symposium Las Vegas, happening July 15-17 at Caesars Palace. Click here to register. More From WMT: Why "Eat the Tariffs" Won't Work for Retailers Like Walmart PBR: A Brazilian Energy Giant to Buy Amid US Debt Drama Market Minute 5/21/25: Yield Spike Kneecaps Stocks Sign in to access your portfolio
