Income investing is hard when income seems scarce. Even the yield on the Bloomberg Barclays U.S. Corporate High Yield Index doesn’t seem all that high. As of 1-3-2018, the yield to worst on this index was 5.65%, well below the average of 9.12% for the 1987 through 2017 period. Even adjusting for inflation, that yield seems a little skimpy. Inflation—as measured by the year-on-year change in the consumer price index—averaged 2.6% for that time period, with the most recent reading for November 2017 coming in at 2.2%. It is no wonder that income-oriented investors are probably looking for alternative sources of income, and casting a more global net across multiple asset classes.
Jonathan Terry, portfolio manager with the Premier Income Strategies Team, addresses tax reform and global flows into the U.S. investment-grade [IG] space.
Dr. Brian Jacobsen, CFA, CFP, is a Senior Investment Strategist with the Wells Fargo Asset Management Multi-Asset Solutions Team.
The results of the Federal Open Market Committee (FOMC) meeting last week were another reminder that an era of exceptionally stimulative central bank policies is ending.
Dr. Brian Jacobsen, CFA, CFP, is a Senior Investment Strategist with the Wells Fargo Asset Management Multi Asset Solutions Team.
Bond yields have risen sharply lately. Dr. Brian Jacobsen discusses why and how to approach the markets.
With contributions from Gabriel G. Diederich, CFA, Portfolio Manager and Dennis Derby, Senior Research Analyst and Portfolio Manager.
As each of us who runs a household knows, having a budget and living within it is one of the most fundamental things we do.
Many investors are waiting for economic growth to accelerate.
Puerto Rico is seeking the biggest restructuring of state or local government ever seen in the U.S.