Schwab's Jones Sees 'Room Still' for Yields to Fall

The video discusses the potential for total return in the next 12 months, focusing on the coupon as the primary source of return. It highlights the possibility of yields falling slightly, especially if the Federal Reserve continues to hike rates, leading to deep curve inversions. The discussion then shifts to investment-grade corporate bonds, noting the potential for spread tightening and appreciation. The Bloomberg corporate index is referenced, indicating a yield of over 5%, which is considered a good yield to lock in with a duration of six or seven years.

What factors might influence the total return over the next 12 months?

How does the teacher view the potential for yield to fall?

What does the teacher suggest about the room for spread tightening?

What is the current yield of the corporate index mentioned?

What is the duration of the investment grade corporate bond mentioned?