Basis Points

Policy headlines are creating fresh opportunities in securitized markets. This week on the Basis Points podcast, Kevin Flanagan is joined by Dave Goodson, Head of Securitized at Voya Investment Management, to break down the Trump administration’s proposed $200 billion purchase of agency mortgage-backed securities (MBS), what’s already priced in and where active fixed income managers may find relative value. They also explore why a mortgage-plus approach could make sense as policy and market dynamics continue to evolve.

Basis point: 1/100th of 1 percent.

MBS: Mortgage-backed security

CMBS: Commercial mortgage-backed security

RMBS: Residential mortgage-backed security

Learn more: https://www.wisdomtree.com/investments/multimedia/basis-points-podcasts#Listen%20now

Please see the WisdomTree Glossary for additional definitions of terms and/or indexes: https://www.wisdomtree.com/investments/glossary

After a flurry of rate cuts at the end of 2025, the FOMC decided to pause their rate cuts at the January meeting, keeping the fed funds trading range at 3.50%–3.75%. This week on the Basis Points podcast, Kevin Flanagan explains why this shift may mark a move toward neutral policy and how labor market data could steer the next phase of decision-making.

Basis point: 1/100th of 1 percent.

Learn more: https://www.wisdomtree.com/investments/multimedia/basis-points-podcasts#Listen%20now

Please see the WisdomTree Glossary for additional definitions of terms and/or indexes: https://www.wisdomtree.com/investments/glossary

Bank loans come with yield, but also risk. This week on the Basis Points podcast, Kevin Flanagan explains how the WisdomTree Interest Rate Hedged High Yield Bond Fund (HYZD) offers a high-yield, zero-duration alternative with quality screening designed to reduce credit risk.

Basis point: 1/100th of 1 percent.

Learn more: https://www.wisdomtree.com/investments/multimedia/basis-points-podcasts#Listen%20now

Please see the WisdomTree Glossary for additional definitions of terms and/or indexes: https://www.wisdomtree.com/investments/glossary

The steepening yield curve isn’t just a forecast, it’s atest.

This week on the Basis Points podcast, Kevin Flanagan breaks down a horizon analysis using our 2026 Economic & Market Outlook, showing how short-term Treasuries could outperform while long duration risks negative returns.

Basis point: 1/100th of 1 percent.

Learn more: https://www.wisdomtree.com/investments/multimedia/basis-points-podcasts#Listen%20now 

Please see theWisdomTree Glossary for additional definitions of terms and/or indexes: https://www.wisdomtree.com/investments/glossary

The Treasury yield curve steepened in 2025, and 2026 could bring more of the same. This week on the Basis Points podcast, Kevin Flanagan explains why an active/passive barbell strategy is a timely way to capture income potential while managing duration risk.

Basis point: 1/100th of 1 percent.

Learn more: https://www.wisdomtree.com/investments/multimedia/basis-points-podcasts#Listen%20now

Please see the WisdomTree Glossary for additional definitions of terms and/or indexes: https://www.wisdomtree.com/investments/glossary

The Fed’s divisions may run deeper than the official vote count suggests. This week on the Basis Points podcast, Kevin Flanagan unpacks the concept of “silent dissenters,” what the dot plot signals about rate cuts, and why a shifting FOMC could make future policy decisions even more data dependent.

Basis point: 1/100th of 1 percent

Learn more:
https://www.wisdomtree.com/investments/multimedia/basis-points-podcasts#Listen%20now

Please see the WisdomTree Glossary for additional definitions of terms and/or indexes:
https://www.wisdomtree.com/investments/glossary

As expected, the Fed delivered a third straight 25-basis-point rate cut at the December FOMC meeting. With the resumption of rate cuts now at round three, Kevin Flanagan explains how Powell’s “risk management” approach, internal Fed divisions, and missing data raise key questions about what 2026 could bring—and whether the recalibration now needs a recalibration of its own.

Basis point: 1/100th of 1 percent.

Learn more: https://www.wisdomtree.com/investments/multimedia/basis-points-podcasts#Listen%20now

Please see the WisdomTree Glossary for additional definitions of terms and/or indexes:
https://www.wisdomtree.com/investments/glossary

How can new hiring and the unemployment rate rise at the same time? In this episode of Basis Points, Kevin Flanagan explains the mechanics behind September’s seemingly contradictory jobs report, where strong payroll gains coincided with a higher jobless rate. He breaks down the two BLS surveys that drive these numbers, why they can diverge month to month, and what this dynamic means for the Fed as policymakers head into the December FOMC meeting with limited additional data.

Basis point: 1/100th of 1 percent.

Learn more: https://www.wisdomtree.com/investments/multimedia/basis-points-podcasts#Listen%20now

Please see the WisdomTree Glossary for additional definitions of terms and/or indexes: https://www.wisdomtree.com/investments/glossary

The latest market focus is back on the Fed, and a growing divide inside the FOMC. This week on the Basis Points podcast, Kevin Flanagan breaks down why policymakers are split on additional rate cuts ahead of the December meeting—and what regional Fed presidents are signaling about inflation risks. With key labor data on deck, find out what could shape the Fed’s next move.

Basis point: 1/100th of 1 percent.

Learn more: https://www.wisdomtree.com/investments/multimedia/basis-points-podcasts#Listen%20now

Please see the WisdomTree Glossary for additional definitions of terms and/or indexes:
https://www.wisdomtree.com/investments/glossary

It’s time to go back to basics with fixed income. This week on the Basis Points podcast, Kevin Flanagan, shares how tax-aware laddered bond strategies in both municipal and Treasury markets may help investors stay disciplined, diversify effectively, and manage after-tax income.

Basis point: 1/100th of 1 percent.

Learn more: https://www.wisdomtree.com/investments/multimedia/basis-points-podcasts#Listen%20now 

Please see the WisdomTree Glossary for additional definitions of terms and/or indexes: https://www.wisdomtree.com/investments/glossary

Disclosure:

WTMU/WTMY: Municipal securities carry various risks, including credit, interest rate, prepayment and valuation risks. Issuers may face financial difficulties that impact their ability to meet payment obligations. The value of these securities can fluctuate due to changes in revenue sources, local economic and political conditions and industry-specific downturns (e.g., education, health care, transportation, utilities). Additionally, tax-exempt income from municipal securities could become taxable due to regulatory changes or issuer noncompliance, potentially reducing their value. Fixed income investments are subject to interest rate risk; their value will normally decline as interest rates rise. Fixed income investments are also subject to credit risk, the risk that the issuer of a bond will fail to pay interest and principal in a timely manner or that negative perceptions of the issuer’s ability to make such payments will cause the price of that bond to decline. While the Fund attempts to limit credit and counterparty exposure, the value of an investment in the Fund may change quickly and without warning in response to issuer or counterparty defaults and changes in the credit ratings of the Fund’s portfolio investments. 

USFR: Securities with floating rates can be less sensitive to interest rate changes than securities with fixed interest rates, but may decline in value. Fixed income securities will normally decline in value as interest rates rise. The value of an investment in the Fund may change quickly and without warning in response to issuer or counterparty defaults and changes in the credit ratings of the Fund’s portfolio investments. Due to the investment strategy of this Fund, it may make higher capital gain distributions than other ETFs.  

USSH/USIN: U.S. Treasury obligations may provide relatively lower returns than those of other securities. Changes to the financial condition or credit rating of the U.S. government may cause the value to decline. Fixed income securities are subject to interest rate, credit, inflation and reinvestment risks. Generally, as interest rates rise, the value of fixed income securities falls.