Bloomberg Surveillance · Monday, August 31, 2026
Tracy Manzi highlights that the income story in fixed income is the best it's been in years, with yields on the 10-year Treasury near 5% offering good clarity for returns. She believes bonds look compelling, offering an income cushion against potential losses and potential double-digit returns if rates fall in an economic slowdown. Manzi recommends reallocating back to strategic allocation given stock valuations.
“Yeah, so what we're telling our advisors here at Raymond James is that that income story that you just talked about in fixed income is the best that it's been in years.”
“And with yields on the ag close to 5% right now, you can have pretty good clarity that you can earn 5%. I think that that is a good rate of return for you to get.”
“Bonds look really attractive here. I mean, you can have rates go up a little bit, and you've got that income cushion to support you from having losses. But if we do get into an economic slowdown and rates did go back down to that 4% level or 375, you're looking at potentially double-digit returns.”