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.

Q&A: Does the troubled pension plan environment hold opportunity? 
Aug. 19, 2016 :: R.J. Gallo
It is important to consider pension plans on a state-by-state basis.
FedWatch: Getting warmer 
Jul. 27, 2016 :: R.J. Gallo
Today’s statement remained consistent with a Fed looking for the right time to hike.
Q&A: A global bond perspective on a volatile second quarter 
Jul. 18, 2016 :: John Sidawi
Brexit doesn't imply financial gloom, and won't likely overwhelm global capital markets.
Fixed Income Outlook: Unsteady as she goes 
Jul. 15, 2016 :: Robert Ostrowski
The combination of moderate growth, global uncertainties and unprecedented monetary policies continue to work to the benefit of credit.
In Short: Brexit highlights value of fixed-income allocations 
Jul. 1, 2016 :: Robert Ostrowski
Uncertainty can be a bond investor's friend.
FedWatch: Higher bar for raising rates 
Jun. 8, 2016 :: Donald T Ellenberger
Poor jobs report will likely keep rates unchanged at upcoming FOMC meeting.
In Short: Global developed bonds in wait-and-see mode 
Jun. 6, 2016 :: John Sidawi
Don't expect much change until after the upcoming Brexit vote and the FOMC meeting.
In Short: Muni bonds in a sweet spot 
May 19, 2016 :: R.J. Gallo
In a time of elevated volatility in other markets, municipal bonds are relatively well situated.
Q&A: Few positive results so far with negative rates 
May 4, 2016 :: Donald T Ellenberger
The jury is still out on whether negative interest rates actually help economies.
FedWatch: No hike—and no signal for one, either 
Apr. 27, 2016 :: R.J. Gallo
Yellen steers the policy statement in between the differing positions of the members.
FedWatch: Don't even think about it 
Apr. 21, 2016 :: R.J. Gallo
A rate hike at the upcoming FOMC meeting would be a shock.
Market Memo: Why spreads matter 
Apr. 19, 2016 :: Mark E Durbiano
The financial world has plenty of jargon, but 'spreads' are a concept investors should be comfortable with to understand high-yield bonds.
Fixed Income Outlook: The math—and the economy—favor credit 
Apr. 13, 2016 :: Robert J Ostrowski
The rate and economic environment are still constructive for spread products, but not so much for Treasuries.
FedWatch: And then there were two 
Mar. 16, 2016 :: Donald T Ellenberger
The FOMC didn't hike rates but did cut the number of expected hikes in 2016 from four to two.
FedWatch: March meeting could set the stage for future hikes 
Mar. 10, 2016 :: Donald T Ellenberger
A rate hike is very unlikely, but will the Fed hint one is just around the corner?
Market Memo: Default rates in energy don't spell doom 
Feb. 24, 2016 :: Mark E Durbiano
Investors already have paid a price for the likely coming wave of defaults in energy.
In Short: Oil's spill starting to sink credit ratings 
Feb. 11, 2016 :: John T Gentry
Even the largest energy companies are seeing credit-rating downgrades unthinkable only a few years ago.
Q&A: Conundrums abound for Fed 
Jan. 28, 2016 :: Donald T Ellenberger
Why 10-year Treasury yields haven't plunged and other macro topics.
FedWatch: Fed has eyes on global markets, slowing U.S. growth 
Jan. 27, 2016 :: R.J. Gallo
The FOMC stays pat with rates, and won't let "financial and international developments" or recent softness in U.S. economy keep it from normalization.
FedWatch: Fed likely to address market volatility but not act 
Jan. 22, 2016 :: R.J. Gallo
The Fed is not ready to abandon normalization merely due to a difficult start to the year in equities and oil.
Fixed Income Outlook: Giving credit its due 
Jan. 13, 2016 :: Robert J Ostrowski
Despite 2015's challenges, the credit side of the fixed-income world is still our favorite, led by high yield. We also are positioning for modestly rising rates and a yield-curve flattener, with short rates rising faster than long rates.
FedWatch: A dovish hike 
Dec. 16, 2015 :: Donald T Ellenberger
Yellen was able to please hawks with a hike, and doves with plenty of qualifiers.
Q&A: What's going on in the high-yield market 
Dec. 14, 2015 :: Mark E Durbiano
Struggles at a fund that specializes in very distressed companies rattle the market, but the fundamentals don't merit the broad-based scare.
FedWatch: Time is nigh for a hike 
Dec. 11, 2015 :: Donald T Ellenberger
But the FOMC statement is expected to sing its familiar chorus that future hikes will be cautious and gradual.
In Short: What's ahead for high yield? 
Dec. 2, 2015 :: Mark E Durbiano
Outside of energy and metals, the high-yield market should see performance improve in coming months as the economy continues to grow.
FedWatch: The Fed is aware of the clock 
Oct. 28, 2015 :: R.J. Gallo
Policymakers signal that a December rate hike remains in play.
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.
FedWatch: Time isn't on the Fed's side 
Oct. 23, 2015 :: R.J. Gallo
An October surprise, i.e., rate hike, is unlikely but if policymakers want to initiate tightening before year-end, only one meeting's left after this one
Fixed Income Outlook: For now, forget about the Fed 
Oct. 9, 2015 :: Robert J Ostrowski
With rates staying low, the action in the fixed-income arena remains focused on credit products
FedWatch: Are we there yet … No! 
Sept. 17, 2015 :: Donald T Ellenberger
Citing 'recent global economic and financial developments' as one reason, the Fed keeps rates near zero.
FedWatch: Forget 1-in-4; we say 50-50 
Sept. 10, 2015 :: Donald T Ellenberger
We think the likelihood of Fed rate hike next week is higher than the market does.
Market Memo: An overdue correction, nothing worse 
Aug. 27, 2015 :: Donald T Ellenberger
Bonds had their correction two summers ago; now it was equities' turn. But that's all it is.

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