Skip to Content
Fund Spy

A Mixed Quarter for Interest Rates, but Credit Continues Its Rally

The third quarter in bond funds.

Mentioned: , , ,

All eyes were once again on the Federal Reserve in the third quarter. Although the Fed didn't hike, the broader rates environment was mixed. Perhaps the biggest story of the quarter was the continued rally in credit-sensitive bonds.

Rates, Rates, and More Rates
The Fed once again made news in July and September with its decision not to raise short-term policy rates. In her speech following the September decision, Fed Chair Janet Yellen noted that economic conditions had strengthened since the first half of the year, signaling an openness to a potential hike later in the year. There were other signs that a hike might be on the table in December, including dissents from three Federal Reserve regional bank heads. As of Wednesday, the Fed Funds futures markets were pricing in a bit more than a 50% chance of a rate increase by December.

Sarah Bush does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

  • Verify your identity, personalize the content you receive, or create and administer your account.
  • Provide specific products and services to you, such as portfolio management or data aggregation.
  • Develop and improve features of our offerings.
  • Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.