Fixed income insights

With pre-election volatility looming, we still prefer euro-denominated credit over its US equivalents. Euro high yield has an enviable yield cushion, and the BBB-BB bucket within investment grade looks strong. That said, beware the potential for large single-name shifts: careful selection is key.

Dollar stability supports EMD overall, but we like India best given short- and long-term opportunities and its 7% yield. Indian government bonds are now included in key EM benchmarks, so their popularity could soar. Modi’s re-election promises relative policy certainty – good news for investors.

High-yield bonds offer higher yields and are less sensitive to interest rate changes than IG bonds. However, they are less commonly included in portfolios. Investors should consider broad U.S. and European HY bond ETFs for exposure and risk diversification across 1,862 and 682 bonds, respectively.

Make the most of the mis-pricings in Europe’s debt markets with the BGF Euro High Yield Fixed Maturity Bond Fund 2027. This active, research-driven fund blends our very best credit ideas with a selection of high-quality government bonds – all maturing close to the end date of the strategy itself. 

Yields are at their highest point in years. But with inflation dropping, high cash rates might not last much longer. So, what’s next? It might be time to reconsider fixed income. The market often prices in rate actions before they happen, rewarding the early movers. Now could be the perfect moment to act, and ETFs offer a powerful way to do it.

Bond yields are higher today than they were a decade ago. But peaks don’t last forever. We think investors should act now and lock in higher yields, before rate cuts bring them down. Considering fixed maturity ETFs like iBonds can allow investors to capture the current yields across US treasuries, ItalyBTP government bonds &investment grade credit.

Q2 outlook remains positive for Emerging Markets Debt with strong fundamentals and value opportunities. Inflation may pose challenges for rate cuts in developed markets. Emerging Markets credit quality is improving, with potential for positive rating upgrades in 2024.

With developed market central banks poised to start cutting rates, income opportunities are narrowing. Investors are wondering whether they can find relative value in credit. We see a potential opportunity in two main segments, which we share in our latest Tactical Insights. You might be interested to know they are both denominated in €, not $.

The Fund is a buy-and-maintain product designed to pay regular distributions. It invests in a diversified pool of bonds with a maximum maturity close to the end date of the strategy itself (3 yrs). The fund can be way to guide clients through stepping out of cash, locking in today’s potential yields over a short-term horizon of 3 years.

Bond ETFs are increasingly becoming a tool of choice for investors looking to improve their portfolios’ sustainability characteristics and fulfill carbon reduction targets. Explore iShares' comprehensive range of sustainable offerings and services, designed to help investors at every stage of their sustainable journey.

The Fixed Income universe is extensive with a variety of sub-asset classes requiring their own ESG approach. Traditional measures only cover fractions and ultimately fall short. Our PEXT/NEXT™ profiler brings together rigorous bottom-up sector work into a broad but concise infrastructure that forms the basis of our active sustainability approach.

As the world continues to grapple with the challenges of social inequality and climate change, impact investing has emerged as a powerful tool for seeking to generate positive change alongside financial returns. At the heart of impact investing is the intention to create measurable and sustainable social and environmental impact.

A defining moment in bond investing is occurring and the opportunity is profound, with yields at decade highs. We see opportunities in two strategic implementation ideas when allocating to fixed income.

Higher rates and greater volatility define the new regime. It’s a big change from the decade following the global financial crisis. The macro-outlook is more uncertain, and we see plentiful opportunities for active managers.

Bond markets expect more cuts than the Fed is signaling, and this expectation largely reflects a return to pre-COVID dynamics of low inflation, massive central bank support, and suppressed term premia. Changes in economic and financial structures emerging in the post-COVID environment could disrupt the return of “old” bond market dynamics.

Explore the latest innovation in iShares' Islamic investment lineup with the newly introduced iShares $ Sukuk UCITS ETF. This fund provides diversified exposure to emerging market sukuk instruments (Islamic bonds), helping investors capture attractive yields while complying with Islamic investing principles.

What can golf teach us about fixed income investing? Well, both disciplines reward patience and experience, and in both, a single mistake can have severe consequences. In this article, we explore the parallels and tease out some lessons for bond investors from Rory McIlroy’s recent Scottish Open success.