Higher Bond Yields Allow Investors to Make Durable Income

Dow Jones13:41

0541 GMT - Higher yields have created a stronger environment for generating durable income, according to BlackRock Investment Institute in a note. "Investors no longer need to rely on broad bond indices or extend far out the yield curve to earn attractive income," it says. Yet not all income is equal, and the key question is whether investors are being adequately compensated for the risks they assume, the asset manager says. Within government debt, BlackRock favors the front end and the intermediate segments of the U.S. and European yield curves, as well as selected local-currency emerging-market debt, where rates have repriced materially and fundamentals have improved. Beyond government debt, the asset manager favors selected investment-grade credit, higher-quality high yield and direct lending. (emese.bartha@wsj.com)

(END) Dow Jones Newswires

July 15, 2026 01:41 ET (05:41 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.

At the request of the copyright holder, you need to log in to view this content

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment