SFIG ETF

Recent economic data points have been mixed. On the more positive side of the ledger, there's evidence that inflation is cooling and consumer spending remains sturdy.

The Markit iBoxx USD Liquid Investment Grade Index is essentially flat since the start of 2024. While that trails the slight gain notched by the Bloomberg U.S. Aggregate Bond Index, some experts believe investment-grade corporate bonds remain an opportunity-rich corner of the fixed income market.

As measured by the widely followed Markit iBoxx USD Liquid Investment Grade Index, investment-grade corporate bonds aren't doing much to thrill fixed income investors this year. But yields on such debt are attractive.

In the fixed income space, the two primary risks confronting investors are credit risk and interest rate risk. The former can be amplified in the world of corporate credit and the latter can exacerbate those woes.

Bond yields and real yields recently traveled a long way in short order, spooking bond market participants, but some experts believe opportunity remains in some corners of the bond space. Investment-grade corporate credit is part of that conversation.