Despite a tightening of credit spreads this year, making investment-grade corporate bonds more expensive, Wall Street experts believe they offer attractive yields for investors seeking income in 2025. Goldman Sachs Asset Management highlights the combination of returning yields, strong corporate fundamentals, and a Fed committed to economic expansion as factors contributing to this outlook. Fixed-income strategists emphasize the attractive yields of 5% or more offered by investment-grade corporates compared to money market funds and Treasury bills.
Investors looking for income in 2025 should still find attractive yields in corporate bonds . Investment -grade corporates saw their credit spreads tighten this year, making them expensive. However, many on Wall Street believe they remain a good place to put money to work. "We believe the combination of a return of yield relative to the last cycle, sound corporate fundamentals, and a Fed committed to extending the U.S.
" Schwab is advising investors to have a duration around that of the Bloomberg U.S. Aggregate Bond Index, which is about 6.2 years, or even lower. The index measures the broad U.S. investment-grade bond market, including Treasurys. However, strategically, it can sometimes make sense for income investors to extend duration further out, Schwab's Martin said.
Corporate Bonds Investment Yields Fixed Income Economy
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
BREAKING: Bruins' 2025 2025 Football Schedule RevealedThe Big Ten announced its football schedule for the 2025 season, and UCLA's schedule will feature a few familiar faces and multiple teams it did not play this past season in its first year in the Big Ten.
Read more »
Auburn football 2025 schedule reveal: Who do the Tigers play in 2025 and when?How Auburn football's schedule will look in 2025 following Wednesday's official reveal
Read more »
Edmunds hybrid sedan comparison: 2025 Honda Civic vs. 2025 Hyundai ElantraSimilar in size and fuel economy, these two hybrid compact sedans differ from there.
Read more »
Edmunds hybrid sedan comparison: 2025 Honda Civic vs. 2025 Hyundai ElantraSimilar in size and fuel economy, these two hybrid compact sedans differ from there.
Read more »
Edmunds hybrid sedan comparison: 2025 Honda Civic vs. 2025 Hyundai ElantraSimilar in size and fuel economy, these two hybrid compact sedans differ from there. The 2025 Honda Civic Hybrid boasts much stronger performance and a higher-quality cabin, while the 2025 Hyundai Elantra Hybrid provides more features for the money and better tech. There are advantages for both, but when the Civic is ahead, it’s ahead big time.
Read more »
Penn State 2025 Football Schedule: Penn State-Oregon Game Scheduled for 2025Penn State's 2025 football schedule got a sneak peek with the release of the Penn State vs. Oregon game, which also could be the White Out.
Read more »