Investors who want to focus on steady monthly payouts often look for investments that don't expose them to excessive credit risk. For this reason, the Fidelity Total Bond ETF ( NYSE:FBND) has become a go-to choice for Fidelity investors. Delivering a 4.62% yield, this fund functions as a core bond position that works well for portfolios of all shapes and sizes.
Even as this trend has taken hold, the spread of the investment grade bond markets over treasuries, in aggregate, has gone from about 70 basis points to about 85 basis points today. I would anticipate that if the hyperscaler debt issuance theme continues, we could see spreads widen as much as 95 basis points, which is material when we're talking about a relatively low volatility market,
The reduction in international students presents a credit risk for universities heavily reliant on this demographic because of potential declines in tuition income, as international students typically pay full tuition fees.