With the Federal Reserve keeping rates higher for longer and cash suddenly paying more than it used to, short-duration fixed income and money market instruments are back in the spotlight. Instead of focusing only on growth stories that can be sensitive to rising borrowing costs, many investors are looking at businesses whose core activity is putting short term cash to work in treasury bills, commercial paper, or ultra short bonds. This article explores how that theme ties into the latest Fed meeting and highlights 3 stocks from our screener that appear positioned for this rate driven setup.

MarketAxess Holdings (MKTX)

Overview: MarketAxess Holdings operates an electronic platform that connects large investors and broker dealers so they can trade a wide range of bonds, from U.S. corporate and government debt to emerging market and municipal securities, in an anonymous all to all setting. Alongside trading, it provides data, analytics, and automation tools that help clients price bonds, execute trades efficiently, and handle pre and post trade processing.

Operations: MarketAxess generates essentially all of its US$871.1m revenue from end to end trading solutions, with clients based mainly in the United States (US$575.5m), the United Kingdom (US$187.4m), and other regions (US$108.2m).

Market Cap: US$4.1b

MarketAxess operates at the intersection of higher-for-longer rates and the growing use of electronic bond trading. This combination aligns with what many investors are focusing on in the current Fed setup. The company’s platform is focused on fixed income, including shorter dated bonds, and recent Q1 2026 results showed solid revenue and earnings alongside product launches like TraX Tape that deepen its data and pricing offering. At the same time, competition from other venues, pressure on trading fees, and shifts toward lower margin protocols raise questions about how much of that opportunity MarketAxess can retain. For investors weighing a lower P/E than peers, high profit margins, and a 2.68% dividend against these risks, the full story becomes more complex and nuanced.

MarketAxess looks like a pure play on electronic bond trading, but the real story may sit in how its margins and P/E stack up against peers. The analysis report for MarketAxess Holdings hints at what that gap could mean next.

Charles Schwab (SCHW)

Overview: Charles Schwab is a large U.S. wealth management and brokerage company that gives individual investors and advisors access to trading, banking, and advice in one place, from stocks, options, and futures to money market funds, Treasuries, and managed portfolios, supported by digital platforms and in person branches.

Operations: Charles Schwab generates about US$19.6b from Investor Services and US$5.2b from Advisor Services, with all reported revenue of roughly US$24.8b coming from clients in the United States.

Market Cap: US$166.6b

Charles Schwab sits at the center of the higher for longer rate story because much of its business touches U.S. Treasuries, money market funds, and short bond ETFs, where retail and advisor clients have been actively parking cash. At the same time, the company is leaning into AI and digital tools to serve a growing base of younger clients, while seeking to keep costs in check and offering low fee ETFs and new products such as crypto trading. In contrast, Schwab’s reliance on net interest income, use of external funding rather than deposits, and visible insider selling are notable watch points. Taken together, Schwab presents a mix of earnings momentum, interest rate sensitivity, and structural risks that may warrant closer attention.

Charles Schwab’s surge in cash parked in Treasuries and money market funds could be masking a deeper story in its interest rate exposure and funding mix, and the 5 key rewards and 1 important warning sign may reveal what many investors are missing.

Morningstar (MORN)

Overview: Morningstar is an independent research company that helps investors and advisors compare and select investments across funds, ETFs, stocks, bonds, private markets, and retirement products through a mix of data platforms, ratings, model portfolios, and investor tools.

Operations: Morningstar generates most of its revenue from the Morningstar Direct Platform at US$846.6m and PitchBook at US$680.5m, with additional contributions from Morningstar Credit at US$382.4m, Morningstar Wealth at US$248.1m, Morningstar Retirement at US$143.5m, and Corporate and All Other at US$207.3m.

Market Cap: US$6.2b

Morningstar stands out in a higher for longer world because investors are leaning on fixed income, ETF, and money market research tools to reposition portfolios, and Morningstar sits at the center of that data flow while also tapping into private markets and AI driven analytics across PitchBook and Morningstar Credit. Earnings growth forecasts are described as solid, the P/E is reported as below both the wider US market and peers, and partnerships with firms such as CME Group could widen the reach of its indexes and data. Against that backdrop, high debt, reliance on external funding, and recent insider selling highlight that the balance between quality, growth, and risk is not straightforward, and that is where the deeper story lies.

Morningstar’s earnings story, P/E and reach across public and private markets may be masking a bigger question about how much upside investors are really pricing in, and the analyst forecasts for Morningstar could surface the missing twist in that story

The three stocks covered here are only the starting point, as the full Short-Duration Fixed Income and Money Market Instruments screener surfaced 12 more companies tied to short duration fixed income and money market themes, each with its own potential angle on higher rates and shorter interest rate exposure. Use Simply Wall St to identify, analyze, and filter for the specific catalysts and narratives that matter to you so you can focus on the opportunities in this corner of the market that best match your own level of conviction.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.