FLAT - How Defined-Maturity Bond Funds May Help With Credit Market Headwinds
By Timothy Urbanowicz, CFA, Senior Fixed Income ETF Strategist
Credit investors faced many headwinds in 2018 as financial conditions tightened, foreign demand faded, and spreads widened. Despite tailwinds from a booming economy and strong earnings growth, most credit sectors saw negative total returns. Today, many challenges remain, and the growth tailwind may be fading. But there is a certain type of fixed income strategy that can help mitigate the effects of market noise and may help investors pinpoint more attractive opportunities - defined maturity bond funds.
2018: A difficult year for credit investors
A flatter