October 7, 2020

Investors’ Search for Yield Benefits Below Investment-Grade Debt Funds

by Pat Keon, CFA.

Fixed income funds appreciated 1.9% on average during the third quarter of 2020 to push their overall year to date increase to 2.4%. Taxable bond funds and tax-exempt bond funds both posted increases in Q3 (2.2% and 1.2%, respectively) which extended their year-to-date gains to 2.6% and 1.9%.

This quarter’s highlights include:

  • General domestic taxable fixed income funds posted a 3.4% increase led higher by High Yield Funds (+4.6%).
  • World Income Funds appreciated 2.6% as Global High Yield Funds (+4.2%) paced the gains.
  • Corporate Debt BBB-Rated Funds (+1.7%) recorded the best return among the investment-grade corporate debt funds (+1.3%) macro-group.
  • Muni debt funds appreciated 1.2% for the quarter as the national muni peer groups (+1.4%) outdistanced the single states (+1.1%).
  • For the second quarter in a row, Inflation-Protected Bond Funds (+3.1%) paced the increases among the Government/Treasury Funds (+1.2%) macro-group.

Click here or the Download Full Report link in the upper right-hand column of this page to download the Third Quarter 2020 FundMarket Insight Report: Investors’ Search for Yield Benefits Below Investment-Grade Debt Funds.

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