The Daily Interview: What's Happening in the Bond Market

Bonds are one of the few investment categories that have done well over the past year, so today's Daily Interview turned to Joe Balestrino, a senior vice president and senior portfolio manager with Federated Investors(FII Quote), a fund company known for its fixed-income expertise. Balestrino currently manages three bond funds for Federated: the (FEDBX Quote)Federated Bond fund, the (STIAX Quote)Federated Strategic Income fund and the (FTRBX Quote)Federated Total Return Bond fund.

Joe Balestrino Senior Vice President and Senior Portfolio Manager Federated Investors

Recent Daily Interviews

Lehman Brothers Steve Slifer

Venture Economics Jesse Reyes

Jeremy Lopez Morningstar

PricewaterhouseCoopers' Peter Petrusky

Dreyfus Peter I. Higgins

The Patricia Seybold Group's Patricia Seybold

Legg Mason Focus Capital's Robert Hagstrom

Balestrino says investment-grade corporate and Treasuries have continued to outperform, and that even though mortgage- and other asset-backed bonds have done well, the Fed rate cuts have now made him less confident about these investments.

TSC: Which fixed-income asset classes are performing well now and why? And how much of an effect have the Federal interest rate cuts had on the fixed-income securities in which you invest? ...