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Bloomberg Surveillance · Wednesday, September 9, 2026

Schwab Recommends Intermediate, High-Quality Bonds for Diversification and Yield

Omar Aguilar suggests that intermediate, high-quality bonds are the optimal choice for investors seeking diversification and yield, advising against extending duration or credit exposure significantly. He uses an analogy of a family car fleet to illustrate how bonds serve a different, stable purpose compared to equities. Aguilar emphasizes that as long as the historical correlation between equities and bonds holds (unlike in 2022), bonds remain a valuable component of a diversified portfolio.

personOmar Aguilar

The tape

3 quotes
Now, today, you know, there is really not a lot that you can get for having more credit exposure or having more duration exposure. You know, we are emphasizing to our clients to stay close to the middle of the yield curve to make sure that you stay in high quality bonds. So intermediate high-quality bonds seems to be the right spot where you can get nice yields, you can get nice coupons, and you don't necessarily need to extend yourself too much in the risk spectrum.
That's the same thing. Obviously, our Bond guys don't like me to compare them to the minivan, but that's who they are. And that's what it is. And it's a safe place where you want to be there and move them along.
And as long as the correlation between equities and bonds work the way they're supposed to go, unlike 2022, then it's a good place for placing your bets.
Heard on Bloomberg Surveillance — “Rate and Market Uncertainty, published Wednesday, September 9, 2026. Heardvine summarizes and quotes with attribution and timestamps, and links to the original everywhere.
Transcribed via publisher transcript · $0.00
Schwab Recommends Intermediate, High-Quality Bonds for Diversification and Yield — Heardvine