Today's Bonds Pulse
Bond Yields Surge to 19-Year High, Sparking Stock Market Concerns
The 30‑year Treasury yield climbed to a 19‑year peak while the 10‑year rose from 4.03% to 4.69% before easing to about 4.5%. Goldman Sachs research notes that half‑percentage‑point spikes in yields typically turn short‑term S&P 500 returns negative, heightening correction risk. Inflation is running at 3.8% year‑over‑year, fueling the sell‑off.
S&S Activewear’s Debt Ratings Downgraded on Weak Sales Trends
S&P Global Ratings cut S&S Activewear’s issuer credit rating to B‑ minus from B, citing soft revenue trends and elevated leverage. The company ended fiscal 2025 with 8.6‑times leverage and free operating cash flow to debt below 1 percent, reflecting the impact of the 2024 Alphabroder acquisition and a $100 million spend on warehouse automation. S&P expects leverage to fall into the high‑7x range in 2026 as synergies materialize, while the outlook remains stable due to ample liquidity on an $800 million revolver.
Munis Cheapen, USTs End Mixed
Municipal bond yields fell across the curve on Tuesday as U.S. Treasuries posted mixed moves and equity markets closed lower. Analysts linked the muni decline to the Treasury market’s range‑bound behavior and the Federal Reserve’s likely decision to hold rates...
Private‑Credit Market Surpasses High‑Yield Bonds, Raising Default Concerns
Bloomberg reports that the private‑credit market has expanded so rapidly it now exceeds the size of the high‑yield bond market. Portfolio managers John Sheehan and Craig Manchuck of Osterweis Capital say the surge is tied to private‑equity demand and insurance...
Fed Likely to Hold Rates Steady as Iran Conflict Stokes Inflation Fears
The Federal Reserve is poised to keep its policy rate in the 3.5%-3.75% range as the Iran‑linked war in the Strait of Hormuz lifts oil prices above $108 a barrel, raising inflation concerns. Analysts cite the conflict’s impact on consumer...
Sacramento School Bonds Dropped to Junk on Fiscal Woes
Fitch Ratings downgraded Sacramento City Unified School District’s issuer default rating to BB‑minus and its unlimited‑tax general‑obligation bonds to junk, while dedicated‑tax bonds remain investment‑grade. The agency cited rapidly depleting liquidity, eroding reserves and overspending that began in fiscal 2025...
How Mortgage Revenue Bonds Can Boost Your Portfolio
The article explains how state and local housing finance agencies issue mortgage revenue bonds (MRBs) to fund affordable single‑ and multi‑family housing, detailing their structures, credit quality, and market dynamics. It highlights that MRBs, backed by government‑pledged assets and often...
Park Capital's Latest RMBS Raises $380.8 Million
Park Capital is set to sell $380.8 million of residential mortgage‑backed securities (RMBS) through the PRKCM 2026‑AFC3 transaction, slated to close on May 5. The deal features five A‑1 tranches with coupons near 5.44% and AAA ratings, alongside lower‑rated A2, A3, M1 and...
Rates Spark: It’s Jay’s Day
The Federal Reserve expanded its balance sheet by adding $425 bn of Treasury bills, raising total securities holdings by $185 bn, then trimmed monthly bill purchases from $40 bn to $25 bn, signalling comfort with liquidity. Incoming Fed chair Kevin Warsh aims to speed...
Seeking Fixed Income Solutions? Give Municipals a Chance
Advisors are urged to reconsider municipal bonds as a core fixed‑income allocation amid a volatile macro backdrop. With a new Federal Reserve chair expected later this year, the prospect of additional rate cuts could depress cash yields, making tax‑exempt muni...
Bond Insurance Usage Rises Nearly 5% in Q1
Bond insurance volume rose 4.9% year‑over‑year to $7.704 billion in Q1 2026, covering 350 deals. The two largest municipal insurers, Assured Guaranty and BAM, together accounted for the entire market, but Assured’s share slipped to 53.1% while BAM’s grew to 46.9% with...
Push to Expand Financing Tools, Like PABs and TIFIA, for Ports
The Trump administration’s Maritime Action Plan calls for expanded financing tools for U.S. ports, including a national volume cap on private activity bonds (PABs) and access to the Transportation Infrastructure Finance and Innovation Act (TIFIA) loan program. Attorneys from Squire...
Take a Fresh Approach to the ‘Agg’ With This Bond ETF
The American Century Multisector Income ETF (MUSI) turned five in June, offering an actively managed alternative to passive aggregate bond funds. With an effective duration of 5.73 years, the fund sits in the intermediate‑term segment that historically shows low correlation...
Trump’s Spirit Deal Sets New Restructuring Playbook
Trump's offer for Spirit: $500M 1L loan, 90% of the equity via warrants. Bondholders fighting over the leftover 10%. This is the new restructuring playbook.
Schwab Warns Investors $39 Trillion U.S. Debt Could Lift Mortgage Rates and Bond Yields
Charles Schwab’s chief investment strategist Liz Ann Sonders and head of fixed‑income research Collin Martin warned that the United States’ gross national debt, now over $39 trillion, is reshaping yields, mortgage costs and retirement outcomes. The firm cautioned that complacency could...
JBND: Active Management Cannot Fix Structural Risk
JPMorgan Active Bond ETF (JBND) merges intermediate‑duration Treasuries, agency mortgage‑backed securities with negative convexity, and investment‑grade credit at historically tight spreads. The fund’s structure forces downside risk rather than diversification, and the traditional carry premium no longer offers adequate protection....
Vanguard Adds to Its Fixed Income Model Portfolio Menu
Vanguard has introduced a new suite of ten Target Maturity Corporate Bond ETFs, expanding its fixed‑income model‑portfolio menu. The ETFs combine the diversification and liquidity of exchange‑traded funds with defined‑maturity characteristics traditionally found in individual bonds. Each fund carries a...
BNDI: Bonds And Equity Spreads ETF, Above-Average 5.7% Yield, Great Track-Record
BNDI (Bonds And Equity Spreads ETF) blends investment‑grade bonds with equity option spreads to enhance income. The fund delivers a 5.7% dividend yield, notably higher than its benchmark, which has driven superior long‑term total returns. While equity drawdowns can cause...
Amundi Launches $3.24 B Global Green Bond Fund to Boost Emerging‑Market Climate Finance
Amundi announced the launch of a €3 billion ($3.24 billion) Global Green Bond Initiative Fund, anchored by €1 billion ($1.08 billion) of public equity. The blended‑finance vehicle is designed to de‑risk primary green‑bond issuances in emerging markets and attract up to €2 billion ($2.16 billion) from...
Abrdn Ultra Short Municipal Income Fund Q1 2026 Commentary
abrdn Ultra Short Municipal Income Fund posted a 0.57% return in Q1 2026, lagging its Bloomberg Municipal Bond 1‑Year Index benchmark by 0.07 points. The fund kept a short‑duration stance, emphasizing short‑term bonds and variable‑rate securities, while multi‑family housing allocations weighed...
Higher Inflation Dampens S&P 500, IG, HY Returns
"Periods of higher inflation are associated with weaker returns in the S&P 500 and the IG and HY indexes, consistent with a policy backdrop of elevated interest rates that restrain risk-taking" -Apollo Slok
SGAT Convertible at 8.625% Coupon Trades at 60
SGAT had a convertible bond back in the day that I had a big position in. I think it had an 8 5/8 coupon and trade at 60.
Texas Voters Weigh $78.48 Billion of Bonds on May 2
Texas voters will decide on $78.48 billion of local general‑obligation bonds on May 2, the largest May‑month package in state history. The ballot features a $6.24 billion Dallas Independent School District proposal, $65 billion from municipal utility districts, and measures from five cities totaling...
2020‑Peak US Bonds Lose 30‑50% Real Value
If you bought 10 year US bonds near the peak in 2020, on an after inflation basis, you're still down 30% six years later. If you bought 30 year US bonds instead, you're down over 50%.
State AGs Question ESG Influence on Credit Downgrades
A group of state attorneys general wrote to the US SEC and major credit-rating firms, raising concerns about the use of environmental, social and governance factors in downgrade decisions https://t.co/YAjBFb3EC0
Bond ETFs Take on Expanded Role as BlackRock Report Highlights Shift in Portfolio Construction
BlackRock’s new report declares bond ETFs no longer peripheral but central to modern portfolio construction. Higher global yields and expanding alternative assets are prompting investors to treat fixed‑income ETFs as income anchors, liquidity engines, and stabilizers. Global bond‑ETF assets have...
Survey Flags High Credit Risk, yet IG Spreads Stay Low
In @steveliesman FOMC survey, 70% of respondents labeled systemic credit risk as "extremely elevated or "somewhat elevated." How can you possibly square that with IG credit spreads 80bps in the bottom quintile? https://t.co/1lJyASMnM1
Mortgage Rates Dip, Spread Widens to 202 Bps
The average 30-year fixed mortgage rate today: 6.38% Same day last year: 6.82% -------------------- 10-year Treasury yield today: 4.36% Spread today: 202 bps
Masters of the Muniverse: New York City and the Market’s Future
In this episode of FIC Focus, Bloomberg Intelligence’s Matthew Gastahl and senior associate Karen Altamirano sit down with Pat Luby, head of municipal research at Credit Sites, to discuss the evolving landscape of independent municipal research, the fiscal outlook for...
ECB Inaction Could Erode Short‑term Euro Bond Yields
If the ECB does not deliver the almost 70 basis points, or 0.7 percentage points, of rate hikes that markets expect this year, the current yields on short-term European government bonds may not stick around https://t.co/QLIVYNAWdI https://t.co/Te5FjKUzWR
Overweight USTs Now; Watch QRA for Future Issuances
USTs have tracked their seasonal bias closely this year. Now is a favorable time to go overweight, window is from late April to early May. QRA next week is my big concern in case Treasury projects larger...
NavPoint Loads Up on Bonds -- Adding $3.5 Million Worth of VPLS in Q1
NavPoint Financial disclosed a $3.5 million purchase of 45,086 additional shares of Vanguard Core‑Plus Bond Fund (VPLS) in Q1 2026, raising its stake by more than 50 % to roughly 132,000 shares. The addition lifts VPLS to 4.2 % of NavPoint’s 13F‑reported assets under...
AI Triggers Credit Cycle Shift, Targeting Software First
Q1 funding liquidity shock reflects a turn in the credit cycle because of AI, says Carlyle Credit markets are targeting software first because AI can replace it fastest. This isn’t broad disruption yet. It’s targeted repricing where revenue is most exposed. #AI...
Corporate Bonds Surge 30%; Private Credit Squeezes Bank Loans
U.S. corporate bond issuance very strong, 30% growth Bank loan market struggling because private credit eating their lunch https://t.co/SAfuthERyB
Government Borrowing Costs Soar as Iran War Drags On
UK government borrowing costs have surged to their highest level since the 2008 financial crisis as oil prices spiked following the Iran‑Israel conflict. The 10‑year gilt yield breached the 5% mark for only the third time since the war began,...
USD Firm, Oil Climbs, Yields Rise, BOJ Holds
$USD is firmer across the board. Oil is higher for the 6th session in the past 7. 10-year yields are higher. BOJ left policy on hold with a 6-3 vote but Gov Ueda failed to confirm the...
UK Bond Selloff Sends 10-Year Yield Back to 5% Ahead of BOE Meet
UK government bond yields have surged, with the 10‑year benchmark climbing back above 5% for the first time in a month. The rise follows six of seven trading sessions up, adding roughly 30 basis points in under two weeks. The...
U.S. Treasury Sells $70 Billion of 5‑Year Notes, Yields Hit 3.955% as Auction Tails Modestly
The U.S. Treasury auctioned $70 billion of 5‑year notes on Monday, posting a high yield of 3.955% and a bid‑to‑cover ratio of 2.33. The modest tail and rising yields underscore tightening conditions in the fixed‑income market as investors weigh higher rates...
Wall Street Banks Become Top Treasury Buyers Since 2007
The marginal buyer of US govt debt=== Wall Street banks boost Treasury holdings to highest level since 2007 https://t.co/aqL3AAsZf9
3 Diversified Bond Mutual Funds for Stable Portfolio Growth
Zacks highlights three top‑ranked diversified bond mutual funds—Federated Hermes International Bond Strategy (FIBPX), Goldman Sachs Dynamic Bond (GSOPX) and iShares U.S. Intermediate Credit Bond Index Fund (BICBX)—each holding a Zacks Rank #1 Strong Buy. Over the past three years, FIBPX...
Bank of England Rate Decision Puts UK Borrowers in a Cost-of-Money Trap
The Bank of England is set to announce its April 30 decision with the Bank Rate unchanged at 3.75% as UK CPI climbs to 3.3% year‑over‑year, driven by higher fuel costs. While the headline rate may hold, the MPC’s wording...
Treasury Yields Rise as U.S.-Iran Peace Talks Hit an Impasse
U.S. Treasury yields edged higher on Tuesday as the United States and Iran hit an impasse in peace talks. The 10‑year note rose to 4.356%, the 2‑year to 3.822% and the 30‑year to 4.960%, each gaining a few basis points....
Transition to a New Fed Chair Is Unlikely to Mean Immediate Rate Cuts
The Federal Reserve is expected to keep its benchmark rate steady at 3.5%‑3.75% as Jerome Powell chairs what is likely his final meeting as Fed chair. Powell’s term as a governor runs until early 2028, but his successor, Kevin Warsh,...
Redwood Targets $1bn for Long-Duration Illiquid Credit Strategy
Redwood Capital Management is launching a new fund to raise roughly $1 billion for long‑duration, illiquid credit investments. The strategy will deploy capital continuously, allowing the firm to stay invested through extended restructuring cycles rather than concentrating on brief market dislocations....
Philip R Lane: Expanding the Supply of Euro Safe Assets
In a recent speech, Philip R. Lane highlighted the chronic undersupply of euro‑denominated safe assets, noting that Germany's Bunds serve as the de‑facto benchmark but are too limited in scale. He pointed to declining inter‑country spread volatility as evidence of...
Expanding the ILS Perimeter – New Risks, Markets, Capital: ILS NYC 2026 Video
Artemis hosted its tenth ILS NYC conference on February 6, 2026, attracting more than 450 attendees – the largest turnout in the series. A high‑profile panel, moderated by Kathleen Faries, examined how insurance‑linked securities are moving beyond traditional property catastrophe into casualty,...
China Plans Another London Green Sovereign Bond Sale
China is considering another green sovereign bond sale in London this year as Beijing looks to expand its presence in international debt markets https://t.co/gUiG7ZPz7n
Two Spirit Airlines Creditor Groups Back Trump Bailout Plan
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High‑Yield Bonds Can Mask Non‑existent Cash
Pro tip: if a bond trades at >10% yield with a net cash balance sheet… the cash might not be real
US Corporates Issue $24.3 Bn of Bonds Ahead of Earnings and Fed Decisions
Twelve U.S. companies flooded the primary market on Monday, selling $24.3 bn of investment‑grade bonds to lock in financing before the upcoming earnings season and Federal Reserve meetings. The surge, the busiest since early March, also saw riskier issuers line up...
ICMA Publishes Its Semi-Annual Report that Provides Detailed Data on EU and UK Sovereign Bond Market Trading Activity
The International Capital Market Association (ICMA) released its H2 2025 European sovereign bond market data report, covering trading activity from 2022 through early 2026. Total notional trading volume reached €70.7 trillion (about $77 trillion), with €34.1 trillion ($37 trillion) traded in the second half of...