Fixed income yields have risen substantially since central banks began acting to combat inflation. This dramatic reset has driven yields to levels not seen since the Global Financial Crisis, but still leaves today’s income investors with difficult choices. While interest rates in most major developed economies might be at or very near their peaks in this hiking cycle, inflation remains an issue and, while the US Treasury yield curve has been steepening since the end of June, it was previously deeply inverted, which has often been a precursor to recession.
Where to invest now depends on your outlook and risk appetite, but if you’re considering corporate bond markets, here are some alternative, potentially higher yielding or higher quality opportunities, that you can access with ETFs.