FCOR News and Press, Fidelity Corporate Bond From 07/06/22

Inflation remains top of mind for investors and policymakers alike. Tighter monetary regimes and a rising risk of recession are typical hazards for corporate debt. Deglobalization may gather steam. By Scott DiMaggio, CFA & Gershon M. Distenfeld, CFA It's be...

As the Treasury curve flattened and yields rose, spreads on investment-grade corporates and taxable municipals continued to show signs of weakness. Wider spreads and longer durations hurt our performance during the quarter, but locking in higher book yields should be beneficial to our...

The rhythm of the markets has gradually, but permanently, changed over the last 40 years. Despite the (relatively) positive trend in reopening sectors of the economy, the labor market is showing signs of slowing. For now, inflation is the “singular mandate” of major ...

When yields were low, occasionally equity investors would look to high-dividend-paying equities as yields with growth upside. The normalization of risky and risk-free asset correlations should also help investor sentiment and provide for a better balance of risks for investment-grade ...

We remain cautious in equities, but in fixed income, investors now have more yield and credit spread to work with. We think that the Federal Reserve’s rate hikes for this cycle are becoming increasingly priced into the yield curve. Our fixed income team has stress-tested fo...

Why beaten down stocks might not be as cheap as they appear? Why the earnings projections for some stocks might be too high? The bond market is bouncing back. What does that mean for equities? For further details see: Does A Down Market Lead To Buying Opportunities? It's...

Federal Reserve wants to hit the brakes, a 180-degree reversal from the recent two-year effort to turbo-stimulate the U.S. economy. USD's strength since early last year has defied a widening trade deficit, historic negative real interest rates, and growing anxiety that weaponizing the...

Growth is slowing, but it’s slowing to trend at this point. So not to zero, not to negative, but something like the trend that we’ve experienced over the last couple of decades. So, if you’re looking for a great way to play inflation, look to the small cap asset c...

Success in investing over the long term isn’t just about picking winners. By adopting a balanced diversified approach, your portfolio stands a better chance of achieving a stable return over time. In a rapid rising environment for equity markets, we expect fixed income to u...

When money is virtually free for borrowers and near-nil yielding for investors, many people do dumb stuff with money. But when rates rise sharply, the riskiest bets blow up, and investors get reminded that capital options are far from equal. Return of principal matters most in the...