High Yield Spotlight

The fixed income market has gotten jostled around in 2024. If the federal debt spirals higher and the government is forced to raise tax rates to pay for that debt, munis suddenly look a whole lot more attractive. The Guggenheim Taxable Municipal Bond & Investment-Grade Debt Trust (GBAB) has got a solid long-term track record. Volatility, however, is high and the fund should be risk-managed within a broader portfolio.

As the Fed begins what’s expected to be a lengthy rate cutting cycle, the new trend in interest rates is likely to be lower. Yield seekers may need to prepare for an environment where capturing those yields could become a little more challenging. Today, we’ll look at the Cohen & Steers Limited Duration Preferred & Income Fund (LDP), a fund that offers high yield, but caps duration risk, making it a potentially attractive option should conditions in the markets start turning south.

Right now, the markets seem satisfied that everything is just fine. It’s become clear that the markets are not at all worried about current credit market risks. With the Fed lowering rates and more global fiscal stimulus measures about to be released, there’s actually a case where junk bonds could achieve another leg higher in the short-term. One fund we haven’t talked about in this space before is the Credit Suisse High Yield Bond Fund (DHY).