Segall Bryant & Hamill
November 20, 2023
Segall Bryant & Hamill leverages its proprietary investment research, deep industry experience and long‐tenured team to provide intelligently constructed portfolio solutions.

Fixed Income Market Dynamics: Rising Yields, Opportunities, and Mitigating Risks in Today’s Market

Fixed Income Market Dynamics: Rising Yields, Opportunities, and Mitigating Risks in Today’s Market

Fixed income markets have faced challenges this year, as the Fed continued to raise interest rates to tame inflation. However, despite inflation moderating over the past year, interest rates have continued trending upward.

Jim Dadura, CFA , Director of Fixed Income, discusses current market dynamics and where SBH is finding opportunities as we head into 2024.

Click here to view a PDF of the Q&A

Key Takeaways

  • Even though inflation has come down over the past year, yields continue to rise, with real rates moving higher.
  • Over the last two years, the upward buying trend of U.S. Treasuries has reversed as both the Fed and large investors have reduced their holdings. This, along with continued issuance of Treasuries by the government, is contributing to higher rates.
  • We are finding the short-end of the maturity market particularly attractive as the relative yield advantage of money market funds has narrowed substantially, allowing investors to lock-in yields for longer in the short-maturity space while seeking to avoid reinvestment risk if rates fall.
  • High yield is another attractive area, with the higher quality end of the market looking particularly strong, with yields well over 8% and relatively little interest rate risk.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loading PDF

More from Segall Bryant & Hamill
The most important insight of the day
Get the Harvest Daily Digest newsletter.