Why Floating Rate Notes Are Beating Fixed Coupon Bonds in 2026

With the Fed holding rates steady at 3.64 percent but the market pricing potential cuts, bond investors face a classic dilemma: lock in yields now or stay flexible. In this episode, Lucas and Luna drill into floating rate notes — FRNs — as a middle path. They walk through how FRNs reset their coupon based on SOFR, why the 2-year Treasury yield rising to 4.08 percent while the 10-year stays flat creates an unusual opportunity, and where corporate FRNs offer a spread pickup over Treasuries without duration risk. The hosts compare current FRN yields against the Bloomberg FRN index to show the math, and they flag one risk most retail investors miss: the cap structure on some new issues. Whether you are a retired income seeker or a pension fund manager, this episode gives you one concrete tool you have not heard in the other ten episodes. #FloatingRateNotes #FRNs #Treasuries #FixedIncome #BondInvesting #SOFR #YieldCurve #FederalReserve #InterestRates #DurationRisk #CorporateBonds #IncomeInvesting #FexingoBusiness #BusinessPodcast #Finance #InvestingStrategy #BondMarket #2026Markets Keep every episode free: buymeacoffee.com/fexingo