Strategies for Investing in a Rising Rate Environment

Accurately calling interest rate moves has proved to be a difficult, and futile, task for investors over the past several years as we have seen wild moves and really no sustained direction.  While the only aspect of rates that can be accurately predicted seems to be volatility, many are left wondering if the swift move in rates that we have seen in the first two months of 2018 is the beginning of a sustained move upward.  As we look forward, we know the Fed has stated their intention to raise the Federal Funds Rate at least another three times this year, but just what does that mean for Treasury yields?  And if rates do rise materially from here, what does that mean for the high yield market and the various “strategies” out there to deal with rising rates?

Click here to read our piece, “Strategies for Investing in a Rising Rate Environment,” where we look at just how the high yield market has historically performed in the face of rising rates and examine some of the high-yield debt based investment strategies to address interest rate risk.

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