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Taxable Bonds

INVESTMENT INSIGHTS  |  September 2016  |  FEATURING Margaret H. Steinbach , Mike Gitlin & David A. Hoag

Is Aggressive Central Bank Intervention Working?

Quantitative Easing on Turbocharge in Major Economies

In response to the global financial crisis and the muted growth that persists years later, central banks across the globe have aggressively expanded their balance sheets using a range of both traditional and unconventional policy tools. As of the end of June, the combined balance sheets of the U.S. Federal Reserve, European Central Bank and Bank of  Japan totaled over $12.1 trillion — a  283% increase since June 2007. Never before have the balance sheets of the central banks of these major economies  been so inflated.

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INVESTMENT INSIGHTS  |  September 2016  |  FEATURING Margaret H. Steinbach , Mike Gitlin & David A. Hoag

How to Invest in the Post-Post-Crisis

U.S. Economy: Not an Environment for Aggressive Monetary Policy Tightening

It’s been said, and feared, for years that U.S. interest rates will quickly rise once the Federal Reserve starts to reverse course, resulting in declines in the prices of fixed income securities. Since the infamous “Taper Tantrum” in mid-2013, the Federal Reserve has been carefully trying to step away from the unprecedented easy money policy it has employed since the financial crisis. Yet, the power of the U.S. to  act in isolation has diminished over the past decade.

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Emerging markets bonds have notched big gains in 2016, despite political turmoil and economic setbacks. Though it is difficult to definitively say that the market has turned for the better, portfolio manager Rob Neithart says there are good reasons for investors to feel positive. The yield advantage of emerging markets over developed markets is hard to ignore, and in some cases valuations are as attractive as they’ve been in years.

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INVESTMENT INSIGHTS  | 
January 2016
 |  FEATURING Kevin G. Clifford & John H. Smet

Fixed-Income Themes for ’16: Inflation, Quality

American Funds portfolio manager John Smet discusses areas of opportunity he sees for fixed-income investors looking ahead into 2016.

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INVESTMENT INSIGHTS  | 
December 2015
 |  FEATURING Kevin G. Clifford & John H. Smet

Fed Set to Hike Rates but Stay Lower for Longer

Fixed-income portfolio manager John Smet discusses the economic conditions underlying the Fed’s anticipated interest rate hike and offers a likely trajectory for future increases.

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INVESTMENT INSIGHTS  | 
November 2015
 |  FEATURING Wesley Phoa

What a Rate Hike Can Mean for Long-Term Yields

A portfolio manager discusses why interest rates have remained low in the U.S. and what to expect from yields when rates do rise.

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INVESTMENT INSIGHTS  | 
November 2015
 |  FEATURING Wesley Phoa

Why Own Bonds in a Rising Rate Environment?

A portfolio manager discusses reasons to own bonds in a rising rate environment in the context of investor objective.

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Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.

This material is intended for use by financial professionals or in conjunction with the advice of a financial professional.

Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses, which can be obtained from a financial professional and should be read carefully before investing. 

Bond ratings, which typically range from AAA/Aaa (highest) to D (lowest), are assigned by credit rating agencies such as Standard & Poor's, Moody's and/or Fitch, as an indication of an issuer's creditworthiness.

Lower rated bonds are subject to greater fluctuations in value and risk of loss of income and principal than higher rated bonds. 

Investing outside the United States involves risks, such as currency fluctuations, periods of illiquidity and price volatility, as more fully described in the prospectus. These risks may be heightened in connection with investments in developing countries. 

Statements attributed to an individual represent the opinions of that individual as of the date published and do not necessarily reflect the opinions of Capital Group or its affiliates. This information is intended to highlight issues and not to be comprehensive or to provide advice.