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.
With contributions from Gabe Diederich, CFA, Portfolio Manager
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.
Defaults in the U.S. high-yield corporate bond space have been low for an extended period of time. We’re exploring reasons why and what that means in terms of opportunity with Tom Price, manager of the Wells Fargo Short-Term High Yield Bond Fund.
Dr. Brian Jacobsen, CFA, CFP, is a Senior Investment Strategist with the Wells Fargo Asset Management Multi Asset Solutions Team.
This week we’re discussing reasons why you shouldn’t be afraid to stay invested in fixed income with chief fixed-income strategist Jim Kochan of Wells Fargo Asset Management.
Muni bond manager Lyle Fitterer, CFA, CFP, provides insights into Illinois municipal bonds and explains how his team is selectively and strategically finding compelling opportunities.