Insight

Corporate Bond Market Insight - How are Corporate Fundamentals Feeling with a Fed Under Fire?

September 10, 2025

What were the key takeaways from last month’s numbers? Our corporate bond specialists look back at the market’s performance and provide incisive commentary to help you make sense of what drove the market—and what may be on the horizon for fixed income investors.

Key takeaways from the latest edition:

Chair Jerome Powell appeared to endorse lowering rates in his Jackson Hole Economic Symposium speech, and it’s becoming evident that the Fed is more concerned with employment and less with inflation.

Governor Lisa Cook has come under extreme pressure to either resign or be fired. The administration will be able to appoint a new governor if Cook leaves, bringing the number of sitting Trump appointees to four of the twelve voting members.

Earnings have been resilient, high all-in yields continue to provide a solid hedge against uncertainty, and companies have positioned well for an economic slowdown.

Economic performance was mixed. The Institute for Supply Management ISM manufacturing and services sectors as well as the labor market weakened but retail sales are still reasonably strong.

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