Fixed Income (April)
– The Federal Reserve held its target rate steady in April. Rising breakeven inflation levels were a tailwind for TIPS, while core bonds squeaked out a modest gain in the month despite a slight increase in interest rates.
– Credit fared well in the risk-on market, with high yield among the leaders in fixed income during the month.
– Long-duration fixed income fell during the month, as yields were not enough to offset the negative
price impact from higher rates.