VTC News and Press, Vanguard Total Corporate Bond ETF From 01/26/24

2024-01-26 21:36:00 ET Summary From October 2022 through December 2023, cumulative returns for the US Treasury Bill 1–3 Month Index were 6.1%, compared with 7.5% for the Bloomberg US Aggregate Bond Index. Historically, in the three months prior to the first Fed rate cut, th...

2024-01-25 02:30:00 ET Summary While treasury rates, across maturities, jumped dramatically in 2022, their behavior diverged in 2023. The yield curve has been inverted for all of 2023, in all of its variations. If inflation continues its downward path, it is likely that we wil...

2024-01-24 11:29:00 ET Summary Many investors remain overweight cash, but markets have begun to price for a substantial decline in short-term interest rates. The Asset Allocation Committee (“the AAC”) therefore thinks it is time to deploy liquidity, locking in bond y...

2024-01-17 23:10:00 ET Summary The bond market ended the year with both duration and credit risk driving strong returns for a second consecutive month. 10-year Treasury yields slid to their lowest level since July after the Fed softened its stance on further interest rate hikes. ...

2024-01-15 20:30:00 ET Summary Fundamental metrics are showing signs of deterioration to start the year, particularly among the lowest-rated credits. Only 10% of the high-yield market will mature by the end of 2025, and most of this debt will be of higher quality. Given the un...

2024-01-12 23:25:00 ET Summary The biggest economic story of 2023 was about something that didn’t happen. There was no recession in the United States or, for that matter, in the global economy at large. We expect 2024 will be a different environment for AI, one less about h...

2024-01-11 01:18:52 ET Summary The Vanguard Long-Term Corporate Bond ETF has seen its yield to maturity fall below cash for the first time on record. The recent rally in the VCLT has been driven by a drop in long-term bond yields and narrowing credit spreads. The risks outweig...

2024-01-09 13:25:00 ET Summary Amid slower economic growth and more benign monetary policy, we believe that this year bond prices will be driven less by inflation and central bank policy and more by economic growth dynamics. Rather than seek to play the timing of interest rate red...

2024-01-05 09:50:00 ET Summary Bond yields are up but secular forces still pose headwinds for inflation-adjusted returns. While the power of higher bond yields is certainly a welcome development for income investors, the path forward will likely feature plenty of volatility. W...

2024-01-03 21:10:00 ET Summary Treasury yields declined precipitously during the 4th quarter as the Fed’s dovish pivot during the December meeting led to the expectation that rate cuts will be coming earlier in 2024. Investment-grade corporates outperformed taxable munis as...