Category: Investment Grade Weekly

Credit spreads moved wider this week.  The OAS on the Corporate Index closed at 82 on Thursday February 26^th after closing the week prior at 77.  The 10yr Treasury closed last week at 4.08% and had closed at 4.0% on Thursday before breaching 4% on Friday morning.  If the current level holds, today will be the first time the 10yr has closed below 4% since the end of November.  Through Thursday, the Corporate Bond Index year-to-date total return was +1.36% while the yield to maturity for the index was 4.75%.

Points of Interest

There was a lot happening in the market this week as AI-related woes continued to weigh heavily on certain sectors of the equity market, with software companies leading the way lower.  The equity malaise, along with geopolitical worries surrounding Iran, sparked a flight to quality which sent Treasury yields lower.  Next week investors will receive important economic data including Employment and Retail Sales from USA and Europe.  We also get US ISM Services and a flurry of earnings reports from major retailers (COST, TGT) that will help investors gauge the pulse of the American consumer.

Primary Market

New issue supply sailed past the $50bln estimate this week as companies priced more than $63bln in the primary market.  Although spreads have moved wider they have not fully offset the move lower in Treasuries making the funding environment incrementally more attractive for would be issuers.  Next week is expected to be another big one as syndicate desks are looking for $70bln of new debt.  Year-to-date new issue supply stood at $399.6bln through the end of the week.

Flows

According to LSEG Lipper, for the week ended February 25^th, short and intermediate investment-grade bond funds reported a net inflow of +$1.75bln. This was the 13^th consecutive week of inflows, although it was less volume than the past few weeks.  2026 year-to-date flows into investment grade were +$31.3bln.  The pace of flows is double the number of YTD flows to this point in 2025.

This information is intended solely to report on investment strategies identified by Cincinnati Asset Management. Opinions and estimates offered constitute our judgment and are subject to change without notice, as are statements of financial market trends, which are based on current market conditions. This material is not intended as an offer or solicitation to buy, hold or sell any financial instrument. Fixed income securities may be sensitive to prevailing interest rates. When rates rise the value generally declines. Past performance is not a guarantee of future results.

Credit spreads drifted wider this week and the tape is somewhat weak on Friday morning.  The AI disruption trade was in full force during the period throughout the equity markets and some portions of the leveraged loan and high yield credit markets, while IG credit remained relatively unscathed.  The OAS on the Corporate Index closed at 77 on Thursday February 12^th after closing the week prior at 75.  Recall that the index stood at 78 at the beginning of 2026.  The 10yr Treasury closed last week at 4.21% and had closed at 4.10% on Thursday.  The 10yr is wrapped around 4.06% as we go to print on the back of Friday’s cooler than expected CPI print.  Through Thursday, the Corporate Bond Index year-to-date total return was +1.08% while the yield to maturity for the index was 4.77%.

Points of Interest

There were two economic releases of great interest this week.  On Wednesday the delayed non-farm payroll report for the month of January showed much better job growth than expected with 130k jobs adding during the period relative to expectations of 65k.  The unemployment rate also ticked lower for the second consecutive month down to 4.3% versus the survey of 4.4%.  However, there was some bad news as well with the release of the BLS’s revised employment numbers for the full year 2025.  The revision was over 400,000 lower taking the total number of jobs added during the prior year to just 181,000.  This is an average of just over 15k jobs added per month in 2025 which is a weak number any way you slice it.  The labor market is not yet bad but is has increasingly become a “low hire low fire” environment and it has clearly lost some steam over the past 24 months.  The good news is that wages have continued to be supportive of consumer spending.

On Friday morning the CPI report offered a positive surprise in terms of inflation.  For the month of January YoY CPI moved from +2.7% in the prior period down to +2.4% while economists were looking for +2.5%.  This sparked a small rally in Treasuries sending yields lower though part of the move in rates could be related to the malaise in the equity markets this week as it pertains to the AI pain trade.

Primary Market

The primary market was on the screws this week as $40bln in new debt priced which also happened to be the consensus estimate.  We had thought we would need a hyperscaler to print a deal in order to reach that number and this is precisely what happened as Alphabet came to market with a $20bln deal that accounted for half of the weekly calendar.  Next week syndicate desks are looking for $25bln in new supply but we would not be surprised to see this number eclipsed if Treasuries hold current levels.  Year-to-date new issue supply stood at $309bln through the end of the week.

Flows

In what has been a recurring theme, it was another robust week of inflows.  According to LSEG Lipper, for the week ended February 11, short and intermediate investment-grade bond funds reported a net inflow of +$4.32bln. This was the 11^th consecutive week of inflows.  2026 year-to-date flows into investment grade were +$25.2bln.  This is double the number of YTD flows to this point in 2025.

This information is intended solely to report on investment strategies identified by Cincinnati Asset Management. Opinions and estimates offered constitute our judgment and are subject to change without notice, as are statements of financial market trends, which are based on current market conditions. This material is not intended as an offer or solicitation to buy, hold or sell any financial instrument. Fixed income securities may be sensitive to prevailing interest rates. When rates rise the value generally declines. Past performance is not a guarantee of future results.

Credit spreads remained range bound this week with The Index just slightly wider through Thursday.  The OAS on the Corporate Index closed at 73 on Thursday January 29^th after closing the week prior at 72.  The 10yr Treasury closed last week at 4.23% and exhibited almost no change whatsoever throughout the week before closing at 4.23% on Thursday evening.  Through Thursday, the Corporate Bond Index year-to-date total return was +0.24% while the yield to maturity for the index was 4.85%.

Points of Interest

The biggest news of the week came on Friday morning when President Donald Trump said that he intends to nominate Kevin Warsh to be the next chair of the Federal Reserve.  Warsh still needs to be confirmed by the Senate but he is widely viewed as a relatively safe pick given his past experience serving on the US Central Bank’s Board of Governors from 2006 to 2011.  Recall that Jerome Powell’s term expires in May.[i]

The FOMC also met this week and made no changes to its policy rate, as expected.  This pause came after three consecutive meetings where the committee elected to lower rates.  10 of the 12 voting members chose to pause with only 2 dissenters that were in favor of lower rates.

This creates a tough situation for Kevin Warsh and we are not envious of the job that he has in front of him.  On one hand he has a President that has repeatedly called for a policy rate up to 3% lower than its current level (this would be the equivalent of a dozen 25bp rate cuts!). On the other hand, Warsh inherits an economy that has continued to perform and a job market that has experienced slowing growth but has still managed to maintain an unemployment rate that has shown signs of stabilization near historical lows.  With the December dot plot showing a median consensus of just two cuts by the end of 2027 it is hard to envision a scenario where Kevin Warsh will be able to deliver lower rates and appease the President.  In any case, we are hopeful that the Fed continues its time-honored tradition of independence and allows the data to guide its decision-making process.

There is a smattering of economic data next week but the major highlights are JOLTS job data on Wednesday followed by the Nonfarm Payroll report on Friday morning.

Primary Market

The primary market picked up this week as borrowers priced $36.9bln of new debt topping the high end of estimates.  This helped push the monthly total for January to $208bln, making it the 5^th busiest month of all-time.  Syndicate desks are looking for another busy week to start the month of February with the average supply estimate coming in at around $40bln.

Flows

Investment grade bond inflows hit a five-year high in the latest week.  According to LSEG Lipper, for the week ended January 28, short and intermediate investment-grade bond funds reported a net inflow of +$5.4bln, the most since the week ended February 3^rd, 2021. This was the 9^th consecutive week of inflows.  2026 year-to-date flows into investment grade were +$14.46bln.

This information is intended solely to report on investment strategies identified by Cincinnati Asset Management. Opinions and estimates offered constitute our judgment and are subject to change without notice, as are statements of financial market trends, which are based on current market conditions. This material is not intended as an offer or solicitation to buy, hold or sell any financial instrument. Fixed income securities may be sensitive to prevailing interest rates. When rates rise the value generally declines. Past performance is not a guarantee of future results.

[1] Bloomberg, January 30 2026, “Trump Picks a Reinvented Warsh to Lead the Federal Reserve”

Credit spreads moved tighter this week.  The OAS on the Corporate Index closed at 71 on Thursday January 22^nd after closing the week prior at 74.  The Index was 7 bps tighter YTD and stood at its tightest level since 1998 amid a strong technical backdrop for credit.  The 10yr Treasury closed last week at 4.22% before moving to 4.25% on Thursday evening.  The benchmark rate was 8bps higher YTD.  Through Thursday, the Corporate Bond Index year-to-date total return was +0.26% while the yield to maturity for the index was 4.86%.

Points of Interest

The data this week was supportive of a resilient economy.  GDP and personal consumption were healthy.  Core PCE for the month of November remained above the Fed’s long-term target (2%) but it ticked lower from the month prior with no surprises to the upside.  This is backward looking data but it has led market participants to coalesce around the belief that the economy is poised to perform well in 2026.  The strong economic data has caused prognosticators to carefully consider the Fed’s need to decrease its policy rate in the year ahead.  The median projection derived from the Fed’s December dot plot showed just one cut in 2026 with an additional single cut in 2027.  The market started the year with a hunger for 2+ cuts year but interest rate futures were pricing slightly less than two cuts as of Friday afternoon.  Economic stimulus associated with the recently enacted tax reform as well as the performance of the job market will be the two items that have the biggest impact on the policy rate in 2026 in our view.

There are a handful of economic releases next week but the highlight will be the FOMC on Wednesday.  Fed fund futures are currently predicting almost no chance of a cut/raise and we agree.  The more interesting story could be President Trump revealing his preferred choice for the new Fed Chair.  He has consistently said that the announcement would occur in the month of January.  We would not be surprised if this news were to hit the tape at the conclusion of next Wednesday’s FOMC release.

Primary Market

The primary market was slower this week as earnings season continued to progress with many issuers still prohibited from bringing new deals due to quiet periods.  Through Thursday, $20.4bln in new debt was priced with a regional bank deal pending on Friday that will add $1.75bln to that total.  More than $170bln of new debt has been priced so far in 2026, with much of that total ($90.2bln) coming in the first full week of the year, which ended up as the 4^th busiest week of all-time.  The Fed meeting should lead to a front-end loaded calendar in the week ahead.  Dealers are looking for $35bln of new debt next week which would push the monthly total north of $200bln.

Flows

Demand for credit has been strong to start the year.  According to LSEG Lipper, for the week ended January 21, short and intermediate investment-grade bond funds reported a net inflow of +$3.09bln. This was the 8^th consecutive week of inflows dating back to last year.  2026 year-to-date flows into investment grade were +$9.60bln.

This information is intended solely to report on investment strategies identified by Cincinnati Asset Management. Opinions and estimates offered constitute our judgment and are subject to change without notice, as are statements of financial market trends, which are based on current market conditions. This material is not intended as an offer or solicitation to buy, hold or sell any financial instrument. Fixed income securities may be sensitive to prevailing interest rates. When rates rise the value generally declines. Past performance is not a guarantee of future results.

Credit spreads will finish wider this week.  The OAS on the Corporate Index closed at 76 on Thursday October 30^th after closing the week prior at 75.  Although this was a very modest move wider the market “feels” a bit heavier as we go to print on Friday.  Investors are busy processing earnings releases as well as a large amount of new issue supply so we would expect the spread on the index to finish the week 1-2 basis points wider than 76.  Spreads are still very much rangebound over the past few months as the OAS on the index has not traded wide of 80 since early August.  Treasury yields moved slightly higher throughout this week.  The 10yr Treasury closed last week at 4.00% and the benchmark rate closed at 4.10% on Thursday evening.  Through Thursday, the Corporate Bond Index year-to-date total return was +7.54% while the yield to maturity for the index was 4.80%.

News & Economics

It was another week of light economic data as US government data remains impacted by the shutdown.  There were still a few private party releases that occurred this week particularly as it pertains to the housing market.  Mortgage applications rose +7.1% last week indicating that perhaps some buyers/refinancers are starting to come off the sidelines as mortgage rates are closing in on three-year lows.  However, later that morning data showed that pending sales of existing US homes stalled in September after a strong showing in the month of August.

The highlight of the week was Wednesday’s FOMC release.  The Fed cut by 25bps, in line with expectations.  The committee was largely in agreement with just two of the twelve voting members having differing views.  One voting member wanted no cut and one wanted a 50bp cut.  In our view the biggest takeaway from this meeting was Chairman Powell’s press conference as he sought to push back against the idea that a December cut is a forgone conclusion.  Interest rate futures responded in kind as they were pricing a 92.3% chance of a cut on Tuesday evening with that number having been whittled down to a 68.9% chance by Wednesday’s close.

Next week will be another quiet one for government sponsored releases absent a reopening but there will be some datapoints from private providers including MNI Chicago PMI, S&P Manufacturing PMI and ISM data.

Primary Market

It was shock and awe this week in the primary market as it was the busiest week of 2025 and the sixth highest volume week of all time.  It also capped off the busiest October on record.  $78.9bln of new debt priced this week relative to dealer estimates of just $20bln.  Meta Platforms led the way with a $30bln jumbo deal on Thursday.  Other larger issuers of note were HSBC, Lloyds and Santander.  Dealers are looking for $55bln next week to start the month of November.

Flows

According to LSEG Lipper, for the week ended October 29, investment-grade bond funds reported a net inflow of +$1.8bln. Total year-to-date flows into investment grade were +$61.4bln.

This information is intended solely to report on investment strategies identified by Cincinnati Asset Management. Opinions and estimates offered constitute our judgment and are subject to change without notice, as are statements of financial market trends, which are based on current market conditions. This material is not intended as an offer or solicitation to buy, hold or sell any financial instrument. Fixed income securities may be sensitive to prevailing interest rates. When rates rise the value generally declines. Past performance is not a guarantee of future results.

Credit spreads will finish wider this week for the first time in the past four weeks.  The index has traded within a tight 9bp range since mid-July so any move tighter or wider during that time period has been incremental at best.  The OAS on the Corporate Index closed at 75 on Thursday September 25^th after closing the week prior at 72.  Treasury yields moved slightly higher throughout the week.  The 10yr Treasury yield closed last week at 4.13% and was 4.18% as we went to print on Friday afternoon.  Through Thursday, the Corporate Bond Index year-to-date total return was +6.53% while the yield to maturity for the index was 4.86%.

News & Economics

The data this week echoed a familiar refrain: never bet against the U.S. consumer.  Second quarter real GDP was revised up to 3.8% from 3.3% on the back of improved consumer spending.  The PCE index rose 2.7% year-over-year through August while core PCE was 2.9%.  While inflation is not running red hot, it remains very stubborn.  The most surprising release of the week was a 20.5% surge in new home sales for the month of August.  It is worth noting that this data can tend to be extremely volatile and is subject to outsize revisions so there is a widely held belief that this initial release is not entirely accurate.  All told, the data this week was rather hawkish.  There is still a month to go until the next FOMC meeting on October 29^th, and although interest rate futures are pricing a 90% chance of a cut, we think it is far from a done deal if the data keeps indicating that the economy is holding up just fine.

Next week brings data releases for construction spending, ISM manufacturing and services and then the payroll report for the month of September on Friday morning.

Primary Market

It was a much busier week than expected as $56bln of new investment grade debt was priced this week relative to the estimate of $30bln.  Oracle led the way with an $18bln print and other large issuers of note included Broadcom, Dell and Lowe’s.  Next week, syndicate desks are looking for things to cool off a bit into quarter-end with estimates of about $25bln in new supply.

Flows

According to LSEG Lipper, for the week ended September 17, investment-grade bond funds reported a net inflow of +$2.18bln. This marked the 19^th straight week of inflows and is the largest such streak since 2021.  Total year-to-date flows into investment grade were +$47.4bln.

This information is intended solely to report on investment strategies identified by Cincinnati Asset Management. Opinions and estimates offered constitute our judgment and are subject to change without notice, as are statements of financial market trends, which are based on current market conditions. This material is not intended as an offer or solicitation to buy, hold or sell any financial instrument. Fixed income securities may be sensitive to prevailing interest rates. When rates rise the value generally declines. Past performance is not a guarantee of future results.

Credit spreads look as though they will finish the week slightly tighter again.  These have not been big moves tighter the last few weeks but more of an incremental grind lower.  The OAS on the Corporate Index closed at 72 on Thursday September 18^th after closing the week prior at 74.  Treasury yields drifted higher throughout the week and are now off their lows across the curve.  The 10yr Treasury yield closed last week at 4.06% and was 4.12% as we went to print mid-morning on Friday.  Through Thursday, the Corporate Bond Index year-to-date total return was +7.03% while the yield to maturity for the index was 4.76%.

News & Economics

The highlight of the week was the FOMC release and 25bp rate cut, which was essentially baked-in leading up to the meeting.  The updated SEP (dot plot) indicated 50bps of additional easing over the two remaining meetings of the year (no November meeting).  During his press conference, Chairman Powell was neither hawkish nor dovish, in our view, and retained a neutral stance.  He chose his words carefully during the presser, and in our opinion made it clear that the FOMC would not be too aggressive with easier monetary policy with inflation still stubbornly elevated above the Fed’s target and with too many unknowns that have yet to filter their way through the economy with regard to trade policy.

Primary Market

It was a solid week for the primary market as companies priced $34bln of new debt, besting dealer estimates of $30bln.  Next week dealers are looking for another $30bln as the market backdrop remains accommodative for both borrowers and investors.

Flows

According to LSEG Lipper, for the week ended September 17, investment-grade bond funds reported a net inflow of +$2.18bln. This marked the 19^th straight week of inflows and is the largest such streak since 2021.  Total year-to-date flows into investment grade were +$47.4bln.

This information is intended solely to report on investment strategies identified by Cincinnati Asset Management. Opinions and estimates offered constitute our judgment and are subject to change without notice, as are statements of financial market trends, which are based on current market conditions. This material is not intended as an offer or solicitation to buy, hold or sell any financial instrument. Fixed income securities may be sensitive to prevailing interest rates. When rates rise the value generally declines. Past performance is not a guarantee of future results.

Credit spreads inched tighter again this week as they have remained in a relatively tight 5bp range over the course of the past month.  The OAS on the Corporate Index closed at 75 on Thursday September 11^th after closing the week prior at 77.  Treasury yields exhibited little change over the past week through Friday morning.  The 10yr Treasury yield was 4.07% as we went to print.  Through Thursday, the Corporate Bond Index year-to-date total return was +7.31% while the yield to maturity for the index was 4.72%.

News & Economics

Economic highlights this week included PPI and CPI, both of which came within the realm of expectations.  Consumer sentiment data released on Friday morning was softer than expected.  The economic releases this week did little to derail the prevailing market narrative that the Fed will look to deliver a cut next Wednesday.  On Friday morning, interest rate futures were pricing a >100% chance of a 25bp move lower in Fed Funds with a high probability of additional cuts at the October and December meetings.  Next week will also bring economic releases for retail sales, industrial production and housing starts.

Primary Market

The primary market was busy again this week as $38bln was priced through Thursday with up to another $1bln looking to price on Friday.  This figure was lighter than dealer forecasts of $45-$50bln.  Next week syndicate desks are looking for around $30bln of new supply shaded toward Monday and Tuesday. Wednesday FOMC releases are almost always a “no-go” for new supply as issuers prefer to stand down in the wake of the potential rate and spread volatility that can accompany the FOMC post-meeting presser.

Flows

According to LSEG Lipper, for the week ended September 10, investment-grade bond funds reported a net inflow of +$2.7bln. Total year-to-date flows into investment grade were +$45.2bln.

This information is intended solely to report on investment strategies identified by Cincinnati Asset Management. Opinions and estimates offered constitute our judgment and are subject to change without notice, as are statements of financial market trends, which are based on current market conditions. This material is not intended as an offer or solicitation to buy, hold or sell any financial instrument. Fixed income securities may be sensitive to prevailing interest rates. When rates rise the value generally declines. Past performance is not a guarantee of future results.

Credit spreads look poised to finish the week tighter, which is a remarkable feat given the deluge of new issue supply during the period.  The OAS on the Corporate Index closed at 77 on Thursday September 4^th after closing the week prior at 79.  Spreads are a smidge tighter on Friday as we go to print in the late afternoon. Treasury yields are set to finish the week meaningfully lower after another weak jobs report to start the Friday trading session.  The 10yr Treasury yield closed last week at 4.23% and it is wrapped around 4.07% on Friday afternoon.  Through Thursday, the Corporate Bond Index year-to-date total return was +5.95%.

News & Economics

The big news this week was on Friday morning with the release of the nonfarm payrolls report for the month of August.  The BLS report showed that employers added just 22,000 jobs in August while the street was looking for a gain of 75,000.  This was the fourth consecutive month of less than 100,000 payroll additions.  June payrolls also saw a downward revision which knocked the number for that month into negative territory, making June 2025 the first month of payroll reductions since 2020.  Treasury yields moved lower on the back of the release and interest rate futures began to price more than a 100% chance of a 25bp cut when the FOMC convenes on September 17^th.  There is still one big datapoint ahead of the September Fed meeting next Thursday with the release of CPI.  After several consecutive weak job reports accompanied with lower revisions it feels like inflation would need to come in red-hot in order to derail what is likely to be the first decrease in the Fed’s policy rate since December 2024.  Futures are also pricing a high probability of cuts at both the October and December meetings as well (no meeting in November).

Primary Market

It was the busiest week of 2025 for the primary market, which is especially impressive considering Monday was a market holiday.  Companies priced more than $67bln of new debt in just three trading days as there was no activity on Friday to make way for the jobs report.  2025’s pace of issuance now just slightly trails 2024 to the tune of -2%.  Next week is expected to be another busy one with syndicate desks looking for companies to issue up to $50bln in new debt.

Flows

According to LSEG Lipper, for the week ended September 3, investment-grade bond funds reported a net inflow of +$2.6bln. Total year-to-date flows into investment grade were +$42.5bln.

This information is intended solely to report on investment strategies identified by Cincinnati Asset Management. Opinions and estimates offered constitute our judgment and are subject to change without notice, as are statements of financial market trends, which are based on current market conditions. This material is not intended as an offer or solicitation to buy, hold or sell any financial instrument. Fixed income securities may be sensitive to prevailing interest rates. When rates rise the value generally declines. Past performance is not a guarantee of future results.

Credit spreads finished the week unchanged through Thursday, though the market was 3-4 basis points wider Friday afternoon.  The move wider came in sympathy with sharply lower Treasury yields following a weak payroll report on Friday morning.  The OAS on the Corporate Index closed at 76 on Thursday evening. The 10yr Treasury yield was little changed through the first four trading days of the week but was 15bps lower following the jobs report.  The 2yr Treasury was 24bps lower as investors priced a higher probability of a near term cut by the Federal Reserve.  Through Thursday, the Corporate Bond Index year-to-date total return was +4.24% while the yield to maturity for the Index closed the day at 5.07%.

News & Economics

It was a busy week for data as a solid GDP print took the markets by surprise on Wednesday with growth coming in solidly above expectations, however, a closer examination of the numbers showed that most of the headline beat was driven by a reversal in imports and a drawdown in domestic inventories.  The purchase component of GDP painted a picture of waning demand. The Fed followed Wednesday afternoon with no change to its policy rate, as expected.  In his press conference, Chair Powell continued to emphasize that the labor market was in a good enough position that the FOMC could continue to wait-and-see.  With no August meeting on the calendar, the Fed has three major data points to parse following the release of the July labor report this morning: the August jobs report in early September and two inflation reports.  The largest market moving print of the week was nonfarm payrolls this morning and there was no way to spin the release in a positive light.  It was a weak report with July payrolls missing expectations to the downside accompanied by large downward revisions in the June and May numbers.  June was revised to 14k from 147k and May to 19k from 144k.  The unemployment rate also ticked higher to 4.2% from 4.1%.  Stocks traded sharply lower in the aftermath and Treasury yields followed suit.  As we go to print on Friday afternoon, traders were pricing an 86.1% chance of a cut at the Fed’s September meeting while they were pricing just a 39.8% chance the day prior.

Primary Market

It was another typical week for issuance in the midst of earnings season with just $12.2bln of new supply.  Next week is expected to be much busier now that most companies have reported earnings with primary dealers looking for $25-35bln of new issuance.  YTD new issue volume through week end was $979bln which was +1% ahead of 2024’s pace.  It remains to be seen if the risk-off sentiment that was capturing the market on Friday will dissuade IG-rated companies from borrowing next week.  We tend to think that they will forge ahead given that the move lower in Treasury yields has more than offset the move wider in spreads making all-in borrowing costs lower than they would have been just a few days ago.

Flows

According to LSEG Lipper, for the week ended July 30, investment-grade bond funds reported a net inflow of +$1.3bln. Total year-to-date flows into investment grade were +$28.5bln.

This information is intended solely to report on investment strategies identified by Cincinnati Asset Management. Opinions and estimates offered constitute our judgment and are subject to change without notice, as are statements of financial market trends, which are based on current market conditions. This material is not intended as an offer or solicitation to buy, hold or sell any financial instrument. Fixed income securities may be sensitive to prevailing interest rates. When rates rise the value generally declines. Past performance is not a guarantee of future results.