Don’t Miss Out on Higher Yields

  • Lock in higher rates on your bond portfolio while you still can
  • Don’t miss out on locking in 4% yields for five to seven years
  • Lengthen bond maturities to take advantage of price gains when rates fall
  • Add duration before the first rate cut
  • Consider funds with attractive yields and longer maturities
  • Create a bond ladder with staggered maturities
  • Avoid taking on too much credit risk
  • Consider preferred securities and U.S. agency mortgage-backed securities
  • Invest with an active manager in a diversified core bond fund
  • Closed-end bond funds can provide added interest-rate exposure

Just as we were getting used to the idea of higher interest rates, the yield on the benchmark 10-year Treasury note has plunged. The Federal Reserve is likely to start cutting short-term rates next year. However, it’s not too late to lock in higher yields on your bond portfolio. By lengthening bond maturities, adding duration, and considering funds with attractive yields and longer maturities, investors can take advantage of price gains when rates fall. Creating a bond ladder with staggered maturities and avoiding excessive credit risk are also recommended strategies. Additionally, preferred securities and U.S. agency mortgage-backed securities offer attractive yields while maintaining highly rated securities. Investing with an active manager in a diversified core bond fund or closed-end bond funds can provide added interest-rate exposure. Don’t miss out on the opportunity to secure higher rates on your bond portfolio.

Public Companies: SPDR DoubleLine Total Return Tactical ETF (N/A), Charles Schwab (N/A), State Street Global Advisors (N/A), Allspring Global Investments (N/A), iShares Core U.S. Aggregate Bond (AGG), SPDR ICE Preferred Securities ETF (PSK), Vanguard Mortgage-Backed Secs Idx Adm (VMBSX), Putnam Managed Muni Income (PMM), SPDR Bloomberg High Yield Bond ETF (N/A)
Private Companies:
Key People: Jeffrey Gundlach (Bond Fund Manager), Kathy Jones (Chief Fixed-Income Strategist), Michael Arone (Investment Strategist), Janet Rilling (Head of Plus Fixed Income Team), Amey Stone (Author)

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Factuality Level: 7
Justification: The article provides information and recommendations on how to invest in bonds with longer maturities to take advantage of potential interest rate cuts and bond price gains. The information is based on expert opinions and strategies from various sources. However, the article does not provide a balanced view and does not mention potential risks or downsides of these investment strategies.

Noise Level: 4
Justification: The article provides some useful information on strategies for investors to consider in a changing interest rate environment. However, it lacks depth and originality, and mostly reiterates common advice from fixed-income strategists. The article also lacks evidence or data to support its claims, and does not provide any actionable insights or new knowledge for readers.

Financial Relevance: Yes
Financial Markets Impacted: The article discusses the impact of interest rate changes on bond investments and provides recommendations for investors to adjust their fixed-income portfolios.

Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article focuses on financial topics, specifically the impact of interest rate changes on bond investments and strategies for investors to consider. There is no mention of any extreme events.

Reported publicly: www.marketwatch.com