economy
January 22, 2026
Where this top Fidelity bond manager is investing for 2026
Celso Muñoz is among what Morningstar calls the "best-in-class" bond fund managers at Fidelity. Here is where he sees opportunity for income-oriented investors.
TL;DR
- Treasury yields are near 20-year highs, offering attractive risk-reward compared to tight corporate bond spreads.
- The Fidelity Total Bond ETF has a significant allocation to U.S. government bonds, concentrated in the five-to-seven-year maturity range.
- Investment-grade corporate bonds, particularly those rated BBB, are preferred for their potential spread dispersion and research value.
- High-yield bonds and leveraged loans are also considered attractive due to low defaults and a benign economic environment.
- Bonds tied to artificial intelligence are less appealing due to rich issuance levels and limited upside potential compared to equities.
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