FCOR News and Press, Fidelity Corporate Bond From 07/23/22

The current shape of the yield curve really does look like the bond market expects a recession to show up in the not-too-distant future. The compression in longer-dated maturities has been having a mostly positive effect on the stock market this week, particularly the growth-oriented ...

Despite increased market volatility in 2022, the investment grade credit market is healthy and functioning. Even after adjusting for the growth of the corporate bond market, trading volumes in 2022 are only slightly below the average for the prior five years. While new issue conce...

The global economy and financial markets have suffered a dreadful H1 2022, ravaged by a severe commodity shock, strict COVID-19 lockdowns in the world’s second-largest economy, and one of the most aggressive Fed tightening cycles in recent history. H2 looks equally tough. In it...

Based on monetary trends and the early reaction in the economy, we anticipate a slowing growth environment in the U.S., with rising recession risk that depends on the extent of frontloaded Federal Reserve interest rate hikes. Following the initial COVID shock in 2020, investment grade...

Last quarter, the Asset Allocation Committee adopted an underweight view on global equities and leaned more heavily into cash, commodities and other alternative, diversifying assets. The Committee’s views on real and alternative assets are unchanged this quarter. The Asset ...

Strong economic growth in 2021 and a healthy demand environment entering 2022 served as catalysts for companies to allocate high cash balances toward capital expenditures, share repurchases, and M&A. Share repurchases increased considerably, given significant equity drawdowns this...

Investors see further Fed rate rises, but believe they will start moderating in size after September. Investors continue to see some risks to credit markets, with views that fundamentals will deteriorate and spreads will generally widen somewhat. There is uncertainty around when a...

Since the Fed first implemented its “zero interest rate policy” in the wake of the financial crisis, investors have been left with a bond market landscape that presented many challenges from an income perspective. With the dynamic duo of inflation and a Fed tightening po...

If inflation and rate increases do not rise above current market expectations, however, there is a case for longer-duration instruments. Asset allocation models are well documented across the investment universe, and portfolio diversification is a widely accepted principle. Histor...

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...