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

As a result, you CAN lose money on a bond fund in a rising interest rate environment.

Not exact matches

«This issuance reflects OnDeck's most successful securitization issuance to date, with strong investor interest resulting in broad participation by existing and new institutional investors, expected improvement in credit ratings, and a significant reduction in cost of funds despite a rising interest rate environment, and is a testament to the strength of OnDeck's business model.»

Statistical analysis of the historical relationship between interest rates and alpha supports the notion that hedge funds generally do better in a rising - rate environment.

A number of factors — such as rising US interest rates, the recurrence of big fluctuations in global currencies, and the widening dispersion of equity returns across sectors and regions — may have helped to create an increasingly conducive environment for hedge - fund strategies, which have seen a positive turnaround in performance in recent quarters.

In a rising interest rate environment, the risk that investors have in owning all bond mutual funds and / or bond ETFs for their bond allocation is that both vehicles are managed on a relative return basis versus a benchmark indeIn a rising interest rate environment, the risk that investors have in owning all bond mutual funds and / or bond ETFs for their bond allocation is that both vehicles are managed on a relative return basis versus a benchmark indein owning all bond mutual funds and / or bond ETFs for their bond allocation is that both vehicles are managed on a relative return basis versus a benchmark index.

What's the difference between individual bonds and bond mutual funds / ETFs — a brief update in the context of a rising interest rate environment.

The pace of withdrawals that bond funds have been experiencing is are typical in a rising interest rate environment.

While these developments may affect hedge fund strategies differently, alpha1 for the hedge fund universe has historically strengthened in these environments, particularly when interest rates rise.

Most corporate bond funds will experience a dramatic drop in value as we enter into a rising interest rate environment.

Bond fund prices are marked to market on a daily basis, which means that indeed, you CAN lose money in a rising interest rate environment.

However, investors in any bond fund should anticipate fluctuations in price, especially for longer - term issues and in environments of rising interest rates.

I have the majority of my investments in index funds at Vanguard in a taxable account, but don't like bond funds paying next to nothing in a rising interest rate environment, though their low correlation to stocks would be nice, return free risk though.

Given the rising interest rate environment as a result of stronger economic growth, they believe that, in the current market, positioning the fund along the intermediate portion of the yield curve provides investors less interest rate sensitivity than longer duration portfolios.

Said differently, the secular bull market in bonds that had made bond indexing so difficult to beat appeared to be ending, and we thought adding actively managed funds improved our ability to deal with a potentially rising interest rate environment.

She offers examples of how active investors can respond to changing markets: «If interest rates rise, active fixed - income investors could invest in short - term bonds, which tend to remain fairly stable in rising rate environments, or floating rate funds, which are more insulated from the negative impact of rising rates.

In a rising interest rate environment, you don't lose face value like you would in a bond funIn a rising interest rate environment, you don't lose face value like you would in a bond funin a bond fund.

«We have done a lot of analysis, and we are very confident that a wide blend of alternatives will perform well in a rising interest rate environment,» said Ben Rotenberg, a portfolio manager specializing in alternative investments for Principal Funds.

As detailed above, investing in bond funds can be tricky in a period of rising rates, but they do have benefits in that the investor is outsourcing his or her capital to a bond professional that should have a fair level of expertise in specific bond strategies in a mix of interest rate environments.

Because the funds invest in short - term interest bearing securities on a constant basis, during rising interest rate environments they are able to achieve higher interest rates much more quickly than more conservative savings instruments, like savings accounts or certificates of deposit.

Banks also purchase term federal funds to lock in the current short - term interest rate in a rising rate environment.

There is a risk that in an environment where interest rates have risen sharply, that a stable value fund would have a lower market value than book value, with a below market yield.