When yield isn't enough

A Federal Reserve hike lifts yields, but attractive income alone does not mean investors are being paid for the credit risk they take.

• Higher yields strengthen the foundation for income, but an attractive yield alone doesn't mean you're being paid for credit risk—both must be assessed together.
• Curve positioning matters: short-term yields may rise with policy rates, while persistent deficits and capital competition could keep long-term borrowing costs elevated even after the Fed eases.
• Financial strength is a competitive moat—companies with durable cash flows and manageable debt can…