Morningstar's Sarah Bush and Tim Strauts discuss what bank loans are, their credit sensitivity, reasons for loan issuance, and more.
Beyond noting their stock/bond split, investors should also check their small-cap exposure, overall rate sensitivity, and vulnerability to the wealth effect.
Vanguard's Ken Volpert cautions investors about a rise in short-term rates, and also offers his thoughts on the U.S. debt ceiling as well as Vanguard's TIPS, international-bond, and total bond market funds.
MetWest Total Return Bond has run ahead of its peers this year, with help from its nonagency mortgages and utilities exposure, says comanager Laird Landmann.
Rising interest rates have taken their toll, but as the Fed delays dialing back on stimulus, investors are poised to recapture some of their losses.
Increasingly bullish sentiment means investors must pick their spots carefully.
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