The recent jump in the 10-Year Treasury has reshaped the fixed income landscape, driving a steeper yield curve and creating new opportunities for bond investors. While many investors point to higher oil prices, the story is far more nuanced. Inflation expectations, Federal Reserve policy, fiscal concerns, and shifting market sentiment are all influencing long-term interest rates, and understanding these dynamics can better prepare you and your clients for what comes next.

In this Market Brief, Chris Aleman and Mike Sanders break down what’s really driving Treasury yields, why it matters for bond allocations, and how to think about yield curve positioning in today’s environment.

Learn more: https://madisoninvestments.com/the-issue-at-hand/

For full disclosures and definitions visit: https://madisoninvestments.com/market-brief-whats-really-driving-the-10-year-treasury/

“Madison” and/or “Madison Investments” is the unifying tradename of Madison Investment Holdings, Inc., Madison Asset Management, LLC (“MAM”), and Madison Investment Advisors, LLC (“MIA”). MAM and MIA are registered as investment advisers with the U.S. Securities and Exchange Commission. Madison Funds are distributed by MFD Distributor, LLC. MFD Distributor, LLC is registered with the U.S. Securities and Exchange Commission as a broker-dealer, and is a member firm of the Financial Industry Regulatory Authority. The home office for each firm listed above is 550 Science Drive, Madison, WI 53711. Madison’s toll-free number is 800-767-0300.

This report is for informational purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security and is not investment advice.

Non-deposit investment products are not federally insured, involve investment risk, may lose value and are not obligations of, or guaranteed by, any financial institution. Investment returns and principal value will fluctuate.

In fixed income, as in all investing, returns are generated by assuming some level of risk. Selecting a fund manager that outperforms similar managers or a benchmark index can feel satisfying, but how do you know if the level of risk that manager took on to achieve those returns was appropriate for your clients’ objectives?

In this episode, Chris and Mike discuss how advisors can evaluate fixed income managers beyond headline returns. They break down concepts like alpha, beta, tracking error, and information ratio that you can use today to make more informed client portfolio decisions, while offering a practical framework for understanding where a manager’s performance comes from, how much risk was taken to achieve it, and whether that approach fits the role fixed income is intended to play within your clients’ portfolios.

Learn more: https://madisoninvestments.com/the-issue-at-hand/

For full disclosures and definitions visit: https://madisoninvestments.com/skill-or-luck-measuring-the-value-of-active-management/

“Madison” and/or “Madison Investments” is the unifying tradename of Madison Investment Holdings, Inc., Madison Asset Management, LLC (“MAM”), and Madison Investment Advisors, LLC (“MIA”). MAM and MIA are registered as investment advisers with the U.S. Securities and Exchange Commission. Madison Funds are distributed by MFD Distributor, LLC. MFD Distributor, LLC is registered with the U.S. Securities and Exchange Commission as a broker-dealer, and is a member firm of the Financial Industry Regulatory Authority. The home office for each firm listed above is 550 Science Drive, Madison, WI 53711. Madison’s toll-free number is 800-767-0300.

This report is for informational purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security and is not investment advice.

Non-deposit investment products are not federally insured, involve investment risk, may lose value and are not obligations of, or guaranteed by, any financial institution. Investment returns and principal value will fluctuate.

The Federal Open Market Committee (FOMC) held interest rates steady at their June meeting as inflation remains above the Fed’s target and the labor market continues to show resilience. While the policy decision itself was widely expected, investors were more focused on the outlook and messaging from the first policy meeting of new Chair Kevin Warsh.

In this Market Brief, Chris Aleman and Mike Sanders discuss the key takeaways from the meeting, what advisors should pay closest attention to in the Fed’s updated dot plot, and how to interpret the policy decision and outlook for client portfolios.

Learn more: https://madisoninvestments.com/the-issue-at-hand/

For full disclosures and definitions visit: https://madisoninvestments.com/the-warsh-fed-a-new-playbook-for-bond-investors/

“Madison” and/or “Madison Investments” is the unifying tradename of Madison Investment Holdings, Inc., Madison Asset Management, LLC (“MAM”), and Madison Investment Advisors, LLC (“MIA”). MAM and MIA are registered as investment advisers with the U.S. Securities and Exchange Commission. Madison Funds are distributed by MFD Distributor, LLC. MFD Distributor, LLC is registered with the U.S. Securities and Exchange Commission as a broker-dealer, and is a member firm of the Financial Industry Regulatory Authority. The home office for each firm listed above is 550 Science Drive, Madison, WI 53711. Madison’s toll-free number is 800-767-0300.

This report is for informational purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security and is not investment advice.

Non-deposit investment products are not federally insured, involve investment risk, may lose value and are not obligations of, or guaranteed by, any financial institution. Investment returns and principal value will fluctuate.

When the Federal Open Market Committee (FOMC) convenes for its June 16-17 meeting, all eyes will be on how new Fed Chair Kevin Warsh communicates policy amid a backdrop of economic and political uncertainty. The ongoing conflict with Iran has pushed energy prices higher, contributing to inflation concerns and largely extinguishing expectations for rate cuts. Meanwhile, a resilient labor market, improving productivity, and continued AI-driven capital expenditures point to a strong economy, at least on paper. And then there’s the media attention on how Warsh will handle political pressures, given how vocal President Trump was about his desire for lower rates during the nomination process.

In this episode, Chris Aleman and Mike Sanders take you beyond the headlines to focus on what actually matters: the Fed’s dual mandate, the economic data driving policy decisions, and the implications for investors. Whether you’re preparing for client conversations or evaluating portfolio positioning, this episode provides a framework for interpreting one of the year’s most closely watched Fed meetings.

Learn more: https://madisoninvestments.com/the-issue-at-hand/

For full disclosures and definitions visit: https://madisoninvestments.com/market-brief-previewing-a-pivotal-fomc-meeting/

“Madison” and/or “Madison Investments” is the unifying tradename of Madison Investment Holdings, Inc., Madison Asset Management, LLC (“MAM”), and Madison Investment Advisors, LLC (“MIA”). MAM and MIA are registered as investment advisers with the U.S. Securities and Exchange Commission. Madison Funds are distributed by MFD Distributor, LLC. MFD Distributor, LLC is registered with the U.S. Securities and Exchange Commission as a broker-dealer, and is a member firm of the Financial Industry Regulatory Authority. The home office for each firm listed above is 550 Science Drive, Madison, WI 53711. Madison’s toll-free number is 800-767-0300.

This report is for informational purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security and is not investment advice.

Non-deposit investment products are not federally insured, involve investment risk, may lose value and are not obligations of, or guaranteed by, any financial institution. Investment returns and principal value will fluctuate.

When does it make sense to use active management over bond ladders or index funds? And how should investors think about the tradeoff between fees, flexibility, and risk management?

In this episode, Chris Aleman and Mike Sanders explore the debate around active versus passive fixed income investing. The discussion breaks down the tradeoffs between each approach, including duration exposure, reinvestment risk, credit quality, liquidity, flexibility, fees, and the hidden risks embedded in bond indexes. We also explain why fixed income indexing differs fundamentally from equity indexing.

Whether your preference is active management, bond ladders, or passive exposure, understanding the risks behind each approach can lead to more informed portfolio construction decisions and better long-term outcomes.

Learn more: https://madisoninvestments.com/the-issue-at-hand/

For full disclosures and definitions visit: https://madisoninvestments.com/active-or-passive-how-to-align-bond-allocations-to-investor-goals/

“Madison” and/or “Madison Investments” is the unifying tradename of Madison Investment Holdings, Inc., Madison Asset Management, LLC (“MAM”), and Madison Investment Advisors, LLC (“MIA”). MAM and MIA are registered as investment advisers with the U.S. Securities and Exchange Commission. Madison Funds are distributed by MFD Distributor, LLC. MFD Distributor, LLC is registered with the U.S. Securities and Exchange Commission as a broker-dealer, and is a member firm of the Financial Industry Regulatory Authority. The home office for each firm listed above is 550 Science Drive, Madison, WI 53711. Madison’s toll-free number is 800-767-0300.

This report is for informational purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security and is not investment advice.

Non-deposit investment products are not federally insured, involve investment risk, may lose value and are not obligations of, or guaranteed by, any financial institution. Investment returns and principal value will fluctuate.

Most clients have a solid understanding of stock investing - you invest in equity ownership shares of a company for the potential of price appreciation or dividends. When the conversation turns to fixed income, investors and advisors have a harder time grasping the nuances.

In our first episode, we break down the four key risks that shape fixed income outcomes: when you get your money back, if you get it back, how you get it back, and how easily you can convert it to cash. We also discuss why today's environment requires a more thoughtful approach to credit risk. Using this framework, you can navigate client conversations with confidence.

Learn more: https://madisoninvestments.com/the-issue-at-hand/

For full disclosures and definitions visit: https://madisoninvestments.com/fixed-income-in-a-language-clients-understand/

“Madison” and/or “Madison Investments” is the unifying tradename of Madison Investment Holdings, Inc., Madison Asset Management, LLC (“MAM”), and Madison Investment Advisors, LLC (“MIA”). MAM and MIA are registered as investment advisers with the U.S. Securities and Exchange Commission. Madison Funds are distributed by MFD Distributor, LLC. MFD Distributor, LLC is registered with the U.S. Securities and Exchange Commission as a broker-dealer, and is a member firm of the Financial Industry Regulatory Authority. The home office for each firm listed above is 550 Science Drive, Madison, WI 53711. Madison’s toll-free number is 800-767-0300.

This report is for informational purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security and is not investment advice.

Non-deposit investment products are not federally insured, involve investment risk, may lose value and are not obligations of, or guaranteed by, any financial institution. Investment returns and principal value will fluctuate.

Introducing The Issue at Hand – a new fixed income series focused on the questions shaping markets today.

Meet your hosts, Regional Investment Director Chris Aleman, and Head of Fixed Income Mike Sanders, as they tackle one critical investment question each episode, breaking down what matters and how to talk about it.

Episodes launch on the first Tuesday of each month!

Subscribe: https://madisoninvestments.com/the-issue-at-hand/



Disclosures:
“Madison” and/or “Madison Investments” is the unifying tradename of Madison Investment Holdings, Inc., Madison Asset Management, LLC (“MAM”), and Madison Investment Advisors, LLC (“MIA”). MAM and MIA are registered as investment advisers with the U.S. Securities and Exchange Commission. Madison Funds are distributed by MFD Distributor, LLC. MFD Distributor, LLC is registered with the U.S. Securities and Exchange Commission as a broker-dealer and is a member firm of the Financial Industry Regulatory Authority. The home office for each firm listed above is 550 Science Drive, Madison, WI 53711. Madison’s toll-free number is 800-767-0300.

Any performance data shown represents past performance. Past performance is no guarantee of future results.

Non-deposit investment products are not federally insured, involve investment risk, may lose value and are not obligations of, or guaranteed by, any financial institution. Investment returns and principal value will fluctuate.

This website is for informational purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security and is not investment advice.

Upon request, Madison may furnish to the client or institution a list of all security recommendations made within the past year.

In addition to the ongoing market risk applicable to portfolio securities, bonds are subject to interest rate risk, credit risk and inflation risk. When interest rates rise, bond prices fall; generally, the longer a bond’s maturity, the more sensitive it is to this risk. Credit risk is the possibility that the issuer of a security will be unable to make interest payments and repay the principal on its debt. Bonds may also be subject to call risk, which allows the issuer to retain the right to redeem the debt, fully or partially, before the scheduled maturity date. Proceeds from sales prior to maturity may be more or less than originally invested due to changes in market conditions or changes in the credit quality of the issuer.