In this Investment Insight, we explore:How inflation, rising interest rates, and bond prices intersect.The value of active management when investing with bonds.Strategies for investing when rates are rising.After a decade-long slide in interest rates, bond investors may be facing a period of sustained rate hikes, prompting worries about the implications for their fixed income investments.
March 20, 2018—As investors, one of our most important jobs at this point in the market cycle is watching for red flags that could signal the beginning of a bear market (often defined as a -20% selloff). One indicator that acted as such a red flag during the financial crisis was the spread, or difference, between the London interbank offered rate (LIBOR) and the Overnight Index Swap (OIS) rate.
October 5, 2017— While President Trump is still early in his tenure, it is fair to speculate that one of his most influential contributions will come in the appointments he will make to key posts within the Federal Reserve Board (“Fed”). The composition of the Fed has incredibly important implications for the U.S. and international financial systems.