Bonds

Markets react to Fed minutes

U.S. sovereign bond prices were higher Tuesday, after being closed Monday for the July 4 holiday, resuming a strong “safe-haven” bid as global equities fell lower.

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BlackRock’s Peter Fisher said Monday he does not see the risky end of the corporate fixed income market sinking the overall U.S. economy like the bust in subprime mortgages did during the Great Recession.

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One of the most basic rules of investing is this: the higher the return you seek, the greater your risk becomes. And that lesson is vividly on display today with news that a prominent New York mutual fund, Third Avenue Focused Credit, is liquidating.  That’s a fancy way of saying, going out of business. The …

High yield bonds worry investors

A part of the bond market could be sending warning signs about the economy and the stock market.

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Yields on U.S. Treasurys, generally considered a safe go-to investment especially in volatile times, have been sliding for the past week as prices have risen. And one strategist says an era of dangerously low returns appears to have arrived for the bond market. Albert Brenner, director of asset allocation strategy at People’s United Bank, says …

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The $1.2 trillion high-yield debt market could face a double whammy as spreads tighten and investors use the corporate earnings season starting in the second week of October as an excuse to take even more profits. “I think there’s a huge story in high yield that’s been brewing for some time. Even in the non-commodities …

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The Puerto Rican Capitol in San Juan

After months of high-level discussions, Puerto Rico officials are proposing a huge raft of changes to address their island’s $72 billion debt burden, including installing new accounting and financial systems, consolidating schools and decreasing tax evasion while increasing the revenue capture rate. The long-awaited fiscal adjustment plan was released Wednesday. It was developed by Puerto …

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An employee views trading screens at the offices of Panmure Gordon and Co. in London.

They may not be paying much, but bonds are suddenly looking pretty good. Last week, while stocks plunged, government bond prices rose sharply. The yield on the 10-year Treasury fell more than 15 basis points to 2.05 percent in the last two days of the week. On Monday morning, the 10-year yield dipped below 2 …

Puerto Rico debt crisis

Puerto Rico has paid back nearly $2 billion of debt, but there’s still a lot of uncertainty about what may happen next.

Puerto Rico on the brink

Kate Kelly tells us what options Puerto Rico might have, as the country unable to pay off most of its debt.

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Bonds, the seemingly boring and inscrutable partner to equities, don’t usually generate much excitement. But they play important roles in portfolio planning, offering diversification and fixed-income opportunities. The wide variety of bond instruments provides the opportunity for age-appropriate strategies throughout the client’s life span. CNBC consulted with several advisors on how they employ bonds when …

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The Federal Reserve Building in Washington, D.C.

Live by central bank liquidity, die by central bank liquidity. That could well become the mantra for a bond market that, after years of support by the Federal Reserve and its global counterparts, now finds itself suffering under the unintended consequences of the trillions in easing distributed to allay the fears of a market in …

ECB: get used to bond volatility

European Central Bank President, Mario Draghi, addressed the recent volatility in the bond market.

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Six months ago, Maura Shaughnessy couldn’t find a single utilities company to buy. Back then, these businesses were on a tear—the S&P 500 Utilities sub-index was up 26 percent in 2014—which made it difficult to find undervalued opportunities. Things have cooled off dramatically since. The sector is down about 7 percent year-to-date, while its price-to-earnings …

Interest rates on the rise

The volatility in the stock market is partly because of the bond market, which saw the yield on the 10-year hit a six-month high.