Tag: bonds

Will the 60/40 Investment Portfolio Survive and Thrive in 2023?

In 2022, the global financial markets recorded sharp losses in both stocks and bonds, wreaking havoc on investors’ portfolios everywhere, including the conventional 60/40 investment portfolio. For decades, the 60/40 portfolio—60 percent in equities and 40 percent in bonds—has been the standard practice. This diversified asset allocation aims to minimize risk and generate returns during…


ESG Bond Issuance Slumped in 2022 as Greenwashing Headaches Persist

Is the boom over for global environmental, social, and governance (ESG) bonds? In 2022, businesses and governments worldwide raised $863 billion in ESG bonds, down 19 percent from the previous year’s haul of $1.1 trillion, according to data compiled by Bloomberg. This is the first time sustainable bonds have declined since they were introduced in…


Treasurys Are on Track for Their Best Start to a Year Since 2001

The U.S. Treasury market is off to its best new-year start in two decades as investors purchased government debt with expectations of the Federal Reserve slowing down its tightening efforts. The benchmark 10-year yield tumbled 10 basis points, to 3.78 percent, on Tuesday, the sharpest decline on the first trading session of the year since…


Bank of Japan Shocks Financial Markets—but Will It Impact the Global Economy?

The Bank of Japan (BoJ) shocked Asian financial markets on Tuesday when it widened caps for a benchmark government bond yield.  The central bank announced that it would permit the yield curve on the 10-year Japanese government bond to range 50 basis points on either side of its 0.0 percent target (pdf). This is up…


US Households Expected to Pay Higher Utility Bills for Decades

Utility costs have surged across the nation this year, leaving millions of Americans falling behind on their monthly bills. It might get more challenging as households nationwide can expect to pay higher utility costs for decades to come due to storm recovery bond charges. Natural disasters have ravaged the United States in recent years, from…


China’s $108 Billion Bond Sale Indicates Looming Economic Crisis: Experts

News Analysis Beijing announced on Dec. 9 the issuance of 750 billion yuan (about $108 billion) worth of special sovereign bonds aimed at stimulating the Chinese economy. Experts believe the move indicates that China faces a looming economic crisis, but it could give “local governments some breathing space” from their massive expenditures under the zero-COVID…


Holiday Gifts That Keep on Giving

By Steve Rosen From Tribune Content Agency Toys, of course, are a shopping must. But consider some gifts for the kids that will keep on giving long after the blocks, action figures, and game systems get relegated to the back of a closet or attic. Savings bonds, contributions to college savings accounts, and helping to…


Series I Bonds, SS Benefits and Other Reader Questions

By Elliot Raphaelson From Tribune Content Agency Question: I am 65 years old. Does it make sense for me to purchase a 30-year Series I bond if it is likely I won’t be around when it matures? Answer: Although the I bond has a 30-year maturity, you can redeem the bond after one year. If…


Investing: Bond Funds Turbocharge Payouts

By Jeffrey R. Kosnett From Kiplinger’s Personal Finance The typical short-term taxable bond fund has lost a hard-to swallow 4 percent to 6 percent this year through early September. Fast-climbing interest rates exacted this heavy cost, usurping two years or more of yield. But you know that. So here’s a query: What is the typical…


From Treasury Buybacks to UK Gilt Intervention, Global Bond Market Volatility Intensifies

The market for global bonds historically has been safe and subdued. However, in 2022, the international bond market has turned extremely volatile, with the selloff resulting in trillions of dollars’ worth of losses. From U.S. Treasurys to UK gilts, many advanced economies have been affected by the chaos unfolding in the industry. US Treasury Buybacks…