Bank Loans: Is the Yield Worth the Chase?

Investors who rush into high-yield bank loans seeking competitive returns might find the yield they chase is hardly worth the pursuit. Loan yields—currently quoted at about 5%—seem attractive at first blush, but we think there’s a lot less here than meets the eye.

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Asian Currencies to Stay Calm at Center of EM Storm

Emerging markets have fallen from favor, but does that mean investors should avoid them entirely? We don’t think so.

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Energy Future Holdings Default Highlights Risks of Leveraged Loans

The Texas-sized bankruptcy of Energy Future Holdings, formerly known as TXU, may have been one of the more anticipated defaults of the past few years, but investors can still learn a lesson or two from it.

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Investing Across Asset Classes in Europe’s Recovery

Tawhid Ali (pictured) and Jorgen Kjaersgaard Europe’s recovery is becoming reality. In our view, successful investing in the continent today requires a selective approach that exploits dislocations by focusing on return-seeking assets across stock and bond markets.

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Two Things Municipal Bond Investors Can Do Today

Municipal bonds have rallied in 2014, but low yields, memories of last year’s sell-off and the potential for higher rates ahead have many investors wondering how to maneuver. We have a couple of ideas.

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Five Things You Should Know About Housing Reform Legislation

Posted by Michael S. Canter (pictured) and Matthew D. Bass of AllianceBernstein (NYSE: AB) A recent US Senate bill calls for a restructuring of the government’s role in housing finance, including winding down Fannie Mae and Freddie Mac. Here are five takeaways from the current proposal.

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Ukraine: A Bailout or “Bail In” for Bond Investors?

As the drama of the political showdown over embattled Ukraine plays out, bond investors face less-publicized concerns over the fate of their Ukrainian investments and a potential bailout. But a bailout may not be all good news for investors.

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Reaching for Yield: Worth the Risk?

Investors seeking more robust returns in a lower-interest-rate environment often look to high-yield bonds for answers. But it’s critical that they don’t reach too far down the credit spectrum in search of higher yields—as tempting as it may be.

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Bond History: Rhyming, Not Repeating

When the Fed does eventually start raising interest rates, at AllianceBernstein we don’t expect to see bonds experiencing the dire scenarios of 1981 or 1994. Instead, the 2003–2006 period of slow and measured rate normalization seems more likely. But it’s not a perfect match, and we do see some important investment factors to consider.

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High Yield: The Perfect Storm That Wasn’t

In a year when the US Federal Reserve caused jitters over quantitative easing, the US government endured a shutdown and investors shifted focus to equities, it’s no surprise that pure “duration-sensitive” bonds like US Treasuries had negative returns as interest rates spiked. But high yield emerged relatively unscathed, returning over 7% for the year.

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