Although the interest rate spread between corporates and Treasuries looks reasonable, because interest rates themselves are so low, corporate bond investors aren't being adequately compensated on an all-in basis, says Morningstar's Dave Sekera.
As the Fed intends to keep interest rates low for the next few years, muni-CEF investors should maintain a close watch on their funds' call exposure.
Aggressive easing policies, particularly in the U.S. and Japan, are creating a global currency war and establishing the foundation for a possible worldwide recession, says Komal Sri-Kumar.
The mid-single-digit returns that fixed-income investors have become accustomed to are unlikely to be repeated, says Fidelity Total Bond manager Ford O'Neil.
Investors in short- to medium-term corporate bonds will probably be fairly rewarded over the near term, says Morningstar's Dave Sekera.
Although some opportunities are available today, muni investors should be sure they are getting compensated for the risks they are undertaking, says Fidelity's Mark Sommer.
Fund investors should think beyond volatility measures alone when sizing up the risk in their portfolios, says Morningstar's Shannon Zimmerman.
The outcome of the Detroit's distressed-debt situation could be a litmus test for how other municipalities nationwide move forward with their payment obligations.
David Ott owns ADAIX and AQMIX. The views expressed do not necessarily represent the views of Acropolis Investment Management, LLC. or its members.
Don't swap your whole fixed-income position for dividend-paying stocks.
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