Don’t Worry About Higher Rates

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Don't Worry About Higher Rates

(New York)

There are a lot of investors out there worried about rates moving higher and bond prices falling as a result. Treasury yields have moved much higher over the last year, which has spooked investors. All that said, one fund manager thinks investors shouldn't fret too much. The reason why is that markets likely have already priced in rate hikes in, so losses shouldn't be much. Furthermore, we have actually entered a more normal yield environment, where one can earn meaningful yields on shorter-term credits that don't have much interest rate risk.

FINSUM : This article raises a good point about the current yield environment. While rate driven losses are worrying, we have finally entered an environment where one can earn comfortable yields on interest rate hedged portfolios.

  • bonds
  • rates
  • yields
  • duration
  • fixed income

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Stocks

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