BondBloxx 2023 Midyear Fixed Income Market Outlook

What’s ahead for fixed income through 2023? Read the BondBloxx 2023 Midyear Fixed Income Market Outlook for a recap of the fixed income market year-to-date and key insights across assets classes –U.S. Treasuries, high yield, investment grade, and international debt– to help investors position portfolios through year end.

Market Outlook →


  • We believe fixed income investments will continue to present opportunities for investors during the second half of 2023.
  • With the “income” back in fixed income, investors may consider investing in bonds with more precision rather than broad market exposures.
  • How investors position their portfolios within and across fixed income matters, as we expect elevated levels of total return performance dispersion to continue.
  • Investors will likely have to navigate continued market volatility, reflecting the potential for persistent inflation and headwinds for the U.S. economy.

Source: ICE Data Services. Over the past 26 years, U.S. high yield bonds have exhibited wide variations in returns across sector and quality categories. For example, while the median annual broad high yield return from 1996–2022 was 5.7%, the range between the best and worst sectors over that period was over 13.3%. This differential of ~2x has held steady for nearly every 5-year period since 2000.

2 Source: Bloomberg, J.P. Morgan as of 6/30/2023. Comparison of the J.P. Morgan EMBI Global Diversified Liquid 1-10 Year Maturity Index to the broad J.P. Morgan EMBI Global Diversified Index.

Important Disclosure

Carefully consider each Fund’s investment objectives, risks, charges, and expenses before investing. This and other information can be found in each Fund’s prospectus or, if available, the summary prospectus, which may be obtained by visiting Read the prospectus carefully before investing.

There are risks associated with investing, including possible loss of principal. Fixed income investments are subject to interest rate risk; their value will normally decline as interest rates rise. Fixed income investments are also subject to credit risk, the risk that the issuer of a bond will fail to pay interest and principal in a timely manner, or that negative perceptions of the issuer’s ability to make such payments will cause the price of that bond to decline. Investing in mortgage- and asset ¬backed securities involves interest rate, credit, valuation, extension and liquidity risks and the risk that payments on the underlying assets are delayed, prepaid, subordinated or defaulted on. 

BondBloxx Investment Management Corporation (“BondBloxx”) is a registered investment adviser. The content of this communication is intended for informational purposes only and is not intended to be investment legal, tax, accounting, regulatory, or other advice. 

Distributor: Foreside Fund Services, LLC.