Cash has a place in portfolios, but bonds are a better choice for locking in yields, boosting return potential and providing diversification benefits.

Color me thankful for not having to de-construct another bout of Volmageddon in this month’s set of talking points. 

As demand from banks and other real money investors returns (and money market demand wanes), agency mortgage-backed securities are poised to benefit. 

Highlights from the week of September 6 – September 12, 2024.

A modest allocation to a bond fund that invests across many sectors and isn’t tied to traditional bonds may help reduce risk and boost return potential.

While recent cracks in consumer spending bear monitoring, consumers (and the fixed income sectors they help propel) are still well positioned.

Our proven strategy can help diversify a fixed income allocation—providing a complement or alternative to full-market high yield and core bonds.

Bond investing isn’t baseball—a swing and miss can lose money. It’s the difference between consistently good, not occasionally great, performance.

High yield bonds and loans both offer attractive opportunities for credit pickers given high income, supportive fundamentals and strong investor appetite.

With cash yields likely heading lower, it could be time to consider shifting to a flexible, broadly diversified fixed income strategy.