With credit spreads still at historically low levels and the markets unlikely to get the massive Fed rate cutting cycle that they were expecting, it might be time to consider some defensive positioning in your fixed income portfolio. Taking positions in higher-rated debt and Treasuries might be advisable in this environment.The BlackRock Core Bond Trust (BHK) does pretty much what you’d think it does based on the name.

The only area of the market that’s really delivered strong returns on a consistent basis has been tech and tech-adjacent companies. The “magnificent 7” ruled the landscape in 2023 and that momentum has carried forward into the start of 2024. For income seekers, there are few options out there that marry mega-cap tech stocks with a high yield strategy, but the Eaton Vance Tax-Managed Diversified Equity Income Fund (ETY) is one of them.

One area of the market that’s gotten interesting over the past couple years is convertible bonds. The Calamos Dynamic Convertible & Income Fund (CCD) not only focuses on this area of the fixed income market, the “dynamic” part allows it to move into and out of other income securities as well as conditions warrant. It’s a matchup of flexibility & high yield vs. total returns & cost.