This analyst blog is part of our coverage of the 2018 Morningstar Investment Conference.
Investors in both investment-grade and high-yield corporate bonds were rewarded in 2016 and 2017, but 2018 has been a rougher ride. The Federal Reserve is hiking interest rates, and the yield on the 10-year U.S. Treasury is up close to half a percentage point since the beginning of the year. Meanwhile, the economy has enjoyed solid growth, company fundamentals remain relatively strong, and credit spreads look thin relative to history. This has led to a unique, challenging environment for many fixed-income investors.