Why Active Bond Management Matters When Spreads Are Tight

Infrastructure Capital Advisors594 FollowersFollow5ShareSavePlay(11min)CommentsSummaryThe broad investment-grade market posted a total return of approximately 7.77%, rewarding investors who maintained fixed income allocations through a volatile rate environment.When spreads are wide, nearly any diversified bond portfolio benefits from the rising tide. When spreads are historically tight, the margin for error shrinks.The Infrastructure Capital Bond Income ETF is built for precisely this kind of market.Launched in January 2025, the fund is actively managed and holds a focused portfolio of approximately 73 corporate bonds selected through a combination of quantitative and qualitative analysis. Andrii Dodonov/iStock via Getty Images Corporate bonds delivered a strong 2025. The broad investment-grade market posted a total return of approximately 7.77%, rewarding investors who maintained fixed income allocations through a volatile rate environment.1 More than $540 billion flowedThis article was written byInfrastructure Capital Advisors594 FollowersFollowInfrastructure Capital Advisors ("Infrastructure Capital") is a leading provider of investment management solutions designed to meet the needs of income-focused investors. Jay Hatfield is CEO and CIO of the investment team. Mr. Hatfield is the lead portfolio manager of the InfraCap Small Cap Income ETF (NYSE: SCAP), InfraCap Equity Income Fund ETF (NYSE: ICAP), InfraCap MLP ETF (NYSE: AMZA), Virtus InfraCap U.S. Preferred Stock ETF (NYSE: PFFA), InfraCap REIT Preferred ETF (NYSE: PFFR), and a series of private accounts. Infrastructure Capital frequently appears on or is quoted in Fox Business, CNBC, Barron's, The Wall Street Journal, Yahoo Finance, TD Ameritrade Network, and Bloomberg Radio/TV.

The team at Infrastructure Capital publishes a monthly market and economic report, quarterly commentaries, investing primers, and asset class and strategy research. In addition, Infrastructure Capital hosts a monthly webinar and attends industry conferences in an effort to provide educational investing resources.