economy
March 18, 2026
These income-generating plays can yield up to 6% as the Fed holds rate steady
Short-term bond funds, bank loans and cash assets still offer solid yields.
TL;DR
- The Federal Reserve has paused rate cuts, keeping the federal funds rate between 3.5% and 3.75% and signaling only one cut this year.
- High yields on short-term Treasurys, high-quality bonds, and premium bond funds remain attractive to investors.
- Ultra-short bond ETFs have experienced $85 billion in inflows over the past 12 months, making them the top category for new investments in fixed-income ETFs.
- Bank loans, also known as senior or syndicated loans, offer high yields and floating interest rates, with top-rated ETFs like TFLR and BKLN showing yields around 6.5%.
- While bank loans offer higher yields, they carry more credit risk and are better suited for longer-term portfolios (3-5 years or more).
- Safe money options like money market funds, CDs, and Treasury bills continue to provide solid income above inflation, though yields have decreased from their peaks.
- Specific CD offerings include a 9-month CD at 4.15% from Bread Financial and various options from Marcus by Goldman Sachs around 4%.
Continue reading the original article