Market Views - Fixed Income

Our experienced investment professionals have managed fixed income portfolios for more than 40 years. Choose an article to read our views on the economy and today’s bond markets.

In Short: We believe the bias on yields is still up 
Feb. 6, 2018 :: R.J. Gallo
Federated stays short on duration, with plenty to monitor in coming days.
Fed Watch: (Slight) optimism about inflation 
Jan. 31, 2018 :: Donald Ellenberger
FOMC kept rates within 1.25-1.50%, gave more upbeat view of inflation.
Fixed Income Outlook: How much longer can this movie play? 
Jan. 12, 2018 :: Robert Ostrowski
The credit cycle is growing old, but high-yield, investment-grade and emerging-market bonds are still offering value.
2018 Outlook: There's still gas in the high-yield tank 
Dec. 22, 2017 :: Mark Durbiano
Federated expects the high-yield sector to be one of the better performers in the fixed-income class in 2018.
Tax Reform Special: What the bill means for investors 
Dec. 20, 2017 ::
Faster growth, higher earnings will be good for stocks, but there are some countervailing forces for bonds.
Muni Update: One way or another, tax reform likely to have an impact 
Nov. 14, 2017 :: R.J. Gallo
Supply and demand almost certain to be affected, with the near-term neutral to slightly positive for investors if a final bill gets done.
In Short: Fundamentals favor shorter duration 
Nov. 2, 2017 :: R.J. Gallo
The bias on yields is likely to be up in coming months, with a dovish ECB and tax-reform sausage-making acting as constraints.
Fed Watch: Setting the stage for a December hike 
Nov. 1, 2017 :: Donald Ellenberger
The FOMC statement released today gave no reason to doubt a December rate hike.
Market Memo: Yield moves likely to be a slog, not a sprint 
Oct. 26, 2017 :: William Ehling
Highly accommodative global monetary policy continues to inhibit rapid rate rises.
Fixed Income Outlook: If it's not broke (yet), why fix it? 
Oct. 17, 2017 :: Robert Ostrowski
Corporate bonds remain favored in this aging but still risk-on environment.
In Short: Run-up in yields prompts a smaller short on duration 
Sept. 29, 2017 :: R.J. Gallo
We see several reasons that could limit upward moves on long yields.
Market Memo: Free to choose? 
Sept. 29, 2017 :: William Ehling
Massive global central bank intervention has made rate movements a guess game.
Fed Watch: A 'gradual and predictable' unwind begins 
Sept. 20, 2017 :: R.J. Gallo
The Fed announced it will start paring its balance sheet in October and kept a December hike on the table.
In Short: We still think the bias on Treasury yields is upward 
Aug. 31, 2017 :: R.J. Gallo
Macro fundamentals argue for higher yields, but D.C. drama and low global inflation should act as caps.
In Short: The bias on rates remains moderately upward 
Aug. 2, 2017 :: R.J. Gallo
Contradictory forces may constrain upward moves but there are more reasons to believe rates will rise than fall in the months ahead.
Fed Watch: 'Relatively soon,' teases Fed 
Jul. 26, 2017 :: Donald Ellenberger
Today's policy statement resulted in no change in rates and no new information on reducing its balance sheet.
Fixed Income Outlook: Pardon the interruption 
Jul. 10, 2017 :: Robert Ostrowski
Six months into the year and we find ourselves pretty much where we started, despite or maybe because of all the political drama.
Fed Watch: A hike, but a focus on inflation 
Jun. 14, 2017 :: R.J. Gallo
The Fed and the markets are most concerned with still disappointing inflation levels.
Market Memo: Don't fear the low 'fear indexes' 
May 16, 2017 :: Donald Ellenberger
There are several reasons that market volatility has been low.
In Short: Puerto Rico, as expected, files for bankruptcy-like proceedings 
May 4, 2017 :: Lee Cunningham
Move has little impact on market.
Fed Watch: No hike, but also no worries 
May 3, 2017 :: Donald Ellenberger
With no Fed action at today's meeting, eyes turn to June's.
In Short: Mortgages aren't offering a lot of value 
Apr. 17, 2017 :: Todd Abraham
Three reasons the fixed-income team at Federated has shifted to underweight in residential MBS.
Fixed Income Outlook: For now, we're playing the waiting game 
Apr. 10, 2017 :: Robert Ostrowski
Federated maintains modest overweight in corporate credit and shifts to underweight in mortgages while awaiting policy clarity that could impact rates.
In Short: 3 reasons to like corporate bonds 
Mar. 23, 2017 :: Donald Ellenberger
President Trump's agenda, if approved, should prove beneficial for corporate credit.
Fed Watch: Fed steps up the pace 
Mar. 15, 2017 :: R.J. Gallo
The Fed met market expectations by hiking rates and implying it is on course for two more this year.
Fed Watch: A 'mandated' hike? 
Mar. 10, 2017 :: R.J. Gallo
A hike near certain, the dot plot and Yellen’s press conference hold greatest market-moving potential.
Fixed Income Liquidity: The new SEC proposals and Federated 
Oct. 27, 2015 :: Robert J Ostrowski
The subject of bond market liquidity continues to get a lot of attention through press articles and proposed Securities and Exchange Commission (SEC) reforms.

Webcast: Fixed Income Outlook

Join Senior Portfolio Manager R.J. Gallo each quarter as he shares insights on timely market trends and topics.