Sentences with phrase «decrease in a rising interest rate environment»

This means the 52bp pick up in yield that one gets today would result in a lower total return later, as bond prices would decrease in a rising interest rate environment.

Not exact matches

According to The Four Pillars of Investing, investors should keep their bond terms short because long - term bonds offer little extra return for taking on a higher interest - rate risk and long - term bonds have a larger decrease in price in a rising interest rate environment.

When Treasury Bonds Perform Poorly An environment in which interest rates are rising will decrease the price of a Treasury security, though that means that their yield will increase at the same time.