So the
impact of falling rates may be smaller with a ladder than with a bullet strategy that targets a single maturity date or than with an investment in a small number of bonds.
It is only during the last two
decades of falling rates, accommodative monetary policy, and globalization that we have seen an extraordinary period of anti-correlation emerge
Kamel brought up the
question of falling rates, saying «You're raising the standards and you're dropping the prices [in general].»
«My rationale for the massive tail wind that you had for stocks and credit markets over the past five or six years, in
terms of falling rates and rising earnings, have tailed off considerably,» he said.
Recent
reports of falling rates of U.S. consumer credit card debt may come as a relief to debt burdened consumers, but not so fast.
The possibility that reinvested dividends or interest from a particular investment will earn less than the original investment
because of falling rates.
Considering the multi-decade
period of falling rates since the 1980s — including the unprecedented zero - interest - rate policy in force from 2008 to 2014 — it is safe to say that we are in uncharted waters as we move toward an environment in which rising rates could possibly be the new norm.
We are now in the camp that we are nearing the
end of falling rates, but feel that any rate increases will be moderate, and to that end we have moderated our duration accordingly.
As interest rates have been at historically low levels for nearly the last seven years, some fixed income investors have shifted their focus to senior loan securities with floating - rate characteristics, such as interest rate floors, to protect themselves in the
event of falling rates.