economy
January 26, 2026
Where Invesco sees 'tremendous' opportunities for income in 2026
Investors have an opportunity to grab solid income and hedge any surprises coming from the Federal Reserve this year, according to Invesco's Jason Bloom.
TL;DR
- Investors can find income and hedge Fed surprises with floating-rate bonds and bank loans.
- Floating-rate assets are attractive when hedging against rising short-term rates.
- Emerging-market bonds present an opportunity due to a weakening U.S. dollar.
- Municipal bonds offer high-quality exposure and attractive taxable-equivalent yields for higher tax brackets.
- Investors should diversify beyond Treasury-heavy index funds by adding floating-rate strategies, high yield, munis, and international bonds.
- Corporate balance sheets are currently in good shape.
- The market may be misinterpreting the Fed's rate cut expectations for the year.
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