Fixed Income Has Entered a Sweet Spot for Investors

By SNW Asset Management via

We all know the sweet spot when we see it. It’s that point on a bat, racket or club that delivers the ball effortlessly exactly where it should go. It’s also the time of the day when the kids are happy, well fed and safe, and it’s that time of life when work, home, hobbies and giving back are all in balance. It’s sweet.

And while it may not spring to most people’s minds, there is a sweet spot in fixed income investing happening now. Rates and spreads are stable to tightening and there is not a lot to worry about. While today’s fixed income markets may not give the same rush as swinging a two iron and landing on the green from 220 yards, it is still satisfying.

This last quarter and year-to-date treasury rates have fallen, muni ratios have contracted and corporate spreads have tightened. Sweet results, if not spectacular. This has all occurred while the Fed is normalizing monetary policy by raising interest rates and planning to shrink its balance sheet.

Click here to read the full story on