In this episode, Kathy interviews her associates Collin Martin and Cooper Howard about the group's midyear fixed income outlook, with a theme of looking beyond Treasuries. The discussion covers investment-grade corporate bonds, high-yield bonds, preferred securities, and the local bond market. Key topics consist of credit quality, tax implications, and the possible impact of the upcoming election on the muni market.

Lastly, Kathy and Liz Ann provide their outlook on what financiers must be viewing in next week's economic data and indicators, and Kathy also highlights the current drop in product rates.

On Investing is an original podcast from Charles Schwab (). For more on the program, see schwab.com/OnInvesting ().

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Important Disclosures

The info provided here is for general informative purposes only and should not be considered a personalized suggestion or tailored financial investment advice. The financial investment methods mentioned here might not appropriate for everybody. Each investor requires to examine a financial investment technique for his/her own particular circumstance before making any investment choice..

All expressions of viewpoint undergo change without notification in reaction to moving market conditions. Information contained herein from third-party service providers is gotten from what are thought about trusted sources. However, its precision, efficiency, or reliability can not be guaranteed..

Examples offered are for illustrative purposes only and not intended to be reflective of outcomes you can anticipate to accomplish.

Fixed income securities undergo increased loss of principal throughout periods of increasing rate of interest. Set earnings financial investments go through various other dangers consisting of modifications in credit quality, market evaluations, liquidity, prepayments, early redemption, corporate occasions, tax implications, and other aspects.

Lower rated securities go through higher credit risk, default danger, and liquidity threat.

Interest earnings on private municipal bonds may not be tax-exempt, depending upon the bond issuer, the kind of bond, or your state of house. Interest income on bonds released by U.S. states, cities, counties, their business, and U.S territories is normally federal-tax-exempt, and state-tax-exempt for homeowners of the state in which the provider lives. In addition, local bond interest for bonds released in U.S. territories is usually state-tax-exempt in all 50 states. Consult your tax advisor concerning your individual scenario.

Tax-exempt bonds are not necessarily suitable for all financiers. Information related to a security's tax-exempt status (federal and in-state) is obtained from third parties, and Schwab does not guarantee its precision. Tax-exempt income might be subject to the alternative minimum tax. Capital gratitude from bond funds and affordable bonds may be subject to state or regional taxes. Capital gains are not exempt from federal earnings tax.

Preferred securities are a type of hybrid financial investment that share attributes of both stock and bonds. They are typically callable, meaning the issuing company may redeem the security at a particular rate after a particular date. Such call functions, and the timing of a call, might impact the security's yield. Preferred securities typically have lower credit ratings and a lower claim to properties than the provider's private bonds. Like bonds, costs of preferred securities tend to move inversely with rate of interest, so their rates may fall throughout durations of increasing rate of interest. Investment value will vary, and preferred securities, when offered before maturity, may be worth basically than initial expense. Preferred securities are subject to numerous other risks consisting of modifications in interest rates and credit quality, default dangers, market appraisals, liquidity, prepayments, early redemption, deferral threat, business events, tax implications, and other elements.

Commodity-related items carry a high level of danger and are not appropriate for all investors. Commodity-related items might be extremely volatile, might be illiquid, and can be considerably affected by underlying product prices, world events, import controls, worldwide competitors, government guidelines, and economic conditions.

All corporate names and market data revealed above are for illustrative purposes only and are not a recommendation, offer to offer, or a solicitation of an offer to purchase any security. Supporting paperwork for any claims or analytical details is readily available upon demand..

Investing involves danger, including loss of principal.

Performance may be affected by dangers connected with non-diversification, including financial investments in specific countries or sectors. Extra risks might also consist of, however are not restricted to, financial investments in foreign securities, specifically e.

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