With the low duration of its bond holdings, the fund is clearly trying to protect
its investors against rising interest rates.
Not exact matches
NEW YORK, May 2 (Reuters)- The U.S. dollar
rose to four - month highs
against a basket of major currencies and world stock indexes mostly edged lower on Wednesday as
investors awaited the outcome of a Federal Reserve meeting and possible indications on the
interest rate outlook.
Recently, at Fortune's Most Powerful Women Summit, legendary value
investor and Berkshire Hathaway (BRKA) CEO Warren Buffett said that if you are looking to place a bet
against the dollar, or that
interest rates would soon
rise, you should just take out a plain vanilla, 30 - year fixed mortgage.
Gold fell from a six - week high as
investors weighed expectations for
rising U.S.
interest rates against a weaker dollar.
«We believe that the strong flows into our
interest rate hedged ETFs demonstrate
investor interest in going beyond short - term bond funds to protect
against rising rates,» said Michael Sapir, Chairman and CEO of ProShare Advisors LLC.
Offers
investors a way to protect their fixed income investments
against a
rise in
interest rates.
«It is these
investors who are up
against rising interest rates and now rent controls that create some vulnerabilities for the market,» said Hildebrand.
As
investors have sought both higher yields and protection
against rising interest rates, some have turned to floating
rate funds, also known as bank - loan or leveraged - loan funds.
In the past year, the market has been hit with new income funds that purportedly protect
investors» principal
against the ravages of
rising interest rates.
Non-traditional bonds provide a hedge
against a
rise in
interest rates, so
investors naturally were looking for a way to avoid what was initially thought to be a sure thing in 2014 —
rising rates.