Does “Secured” Really Mean Safer?
“I don’t want anything unsecured.” It’s a statement financial advisers hear surprisingly often. For many investors, the word secured creates an immediate sense of comfort, while unsecured sounds inherently risky. Yet one of the biggest misconceptions in fixed-income investing is the belief that secured automatically means safer. The reality is more nuanced: secured investments can […]
Oil Shock, Inflation Risks, and the Outlook for Fixed Income Investors
Key Takeaways Temporary oil shocks can create long-term opportunities for disciplined fixed-income investors. Higher bond yields may improve future returns despite short-term market volatility. High-quality bonds can help protect portfolios during periods of inflation and uncertainty. Monitoring inflation expectations is essential for anticipating future interest rate changes. Rising oil prices may delay rate cuts, but […]
What to Expect When a Bond Defaults
Key Takeaways: A bond default does not always mean total loss; recovery is often possible through restructuring or assets. Most bond defaults involve renegotiated terms like maturity extensions, rate changes, or debt-to-equity swaps. Investment-grade bond defaults are rare, making bonds generally more stable than many asset classes. Bondholder recovery depends on security status, seniority, asset […]