Investing for Income: Where to Find Yield in 2026
When evaluating potential fixed-income strategies for clients, advisors need to consider both yield and duration.
Shorter-dated bonds, which are more sensitive to changes in central bank rates, are currently yielding less than longer-dated bonds. However, longer maturities are more vulnerable to shifts in interest rates, credit risk, inflation, and relative value compared to other bonds.
Intermediate-dated bonds, which mature in five to 10 years, look like the sweet spot in terms of balancing yield and managing downside risk. They offer yields above cash rates and benefit from capital appreciation as they approach maturity. Intermediate bonds also stand to gain further if central banks begin cutting interest rates.
If clients tend to…
