After a few weeks of speculation that the Federal Reserve won't lower rates in December, expectations have shifted. Odds that the central bank will trim borrowing costs this month have surged to nearly 80% from 40%.
The Federal Reserve continues to mull interest rate policy. So it's still an excellent time for fixed income investors to capture yields in the higher-for-longer rate environment.
The recent downgrade of U.S. debt may have investors skittish about safe haven Treasuries. To curb these thoughts, one strategy fixed income investors can implement is to diversify their bond exposure.