Bloomberg Surveillance · Thursday, September 17, 2026
Charles Schwab strategists have a favorable outlook on credit markets, specifically recommending both investment grade and high yield bonds. This positive view comes amidst discussions about potential market volatility and the attractiveness of current yields.
“We have a favorable outlook on credit, both investment grade and high yield.”
“But a 5% coupon can really help cushion the blow if yields do rise. And that's what we're highlighting here. There's probably going to be some volatility going forward. There's ups and downs. You have to take that when you invest in the bond market, specifically longer-term bonds. But we're at a point now where the income earned can do a lot of the heavy lifting for your portfolio, can help drive total returns, and can help cushion that blow if yields do drift a little bit higher.”