Article
Fixed Income: Opportunities & Threats
The prevailing winds for fixed income investments are shifting. Ever decreasing interest rates over the last three decades were a tailwind for rising bond prices, providing comfort to bond investors who saw the values of their bonds escalate in response to the declining yields.
From where we stand today, however, the outlook for a global secular rise in interest rates is becoming more probable. Along with rising interest rates, investors will need to factor in other obstacles, such as expected increases in tax rates, inflation rates and credit concerns.