Sentences with phrase «period of rising rates»

The index has a history of performing well during periods of rising rates.

It has been a long time since investors faced a sustained period of rising rates, so it may come as a shock to be reminded that your bond funds can lose money.

But gains have followed periods of rising rates as well.

A long period of rising rates could leave you with capital losses that you might never recover.

High - yield bonds and bank - loan exposure may be viable portfolio options for the income - seeking investor during periods of rising rates.

Because recent years have seen some of the lowest mortgage rates on record, it is possible that we are on the verge of a sustained period of rising rates.

This fact has made real estate one of the most sought after investment classes in periods of rising rates because of its ability to weather the storm of inflation.

Traditionally known for their tax advantages, municipal bonds have played an important role in helping investors diversify across many macroeconomic environments, including periods of rising rates.

Performance varies greatly for bonds of different credit qualities, but even during the worst bear market for bonds, the 40 - year period of rising rates from 1941 to 1981, the worst 1 - year loss for the Bloomberg Barclays US Aggregate Bond Index was just 5 %.

Performance varies greatly for bonds of different credit qualities, but even during the worst bear market for bonds, the 40 - year period of rising rates from 1941 to 1981, the worst 1 - year loss for the Bloomberg Barclays US Aggregate Bond Index was just 5 %.

Those three were big past winners in the Dow Jones industrial average during three - month periods of rising rates, at least doubling the return of the average itself during such periods, according to Kensho, a hedge fund analytics tool.

Here's how bonds fared in the 1950s - 1970s period of rising rates:

FIGURE 4 shows how municipal bonds have historically provided positive returns during periods of rising rates over more than 20 years.

Municipal bonds have delivered higher returns and lower volatility than Treasuries of comparable maturities during the three most recent periods of rising rates.

In fact, historically Lifeco's have outperformed banks during periods of rising rates so some exposure here could be timely.

Traditionally, shorter duration funds have outperformed longer duration funds in periods of rising rates.

An actively managed strategy with the flexibility to invest in the best opportunities in global bond markets, offering investors the potential for total return in different market environments - including periods of rising rates.

By keying in on large - cap sectors and stocks that have shown a strong tendency to move up or down with interest rates, investors can potentially outperform traditional U.S. large - cap equity indexes during periods of rising rates.

It has been a long time since investors faced a sustained period of rising rates, so it may come as a shock to be reminded that your bond funds can lose money.

Recent periods have produced even better performance, as stocks have risen during each of the last 11 periods of rising rates (since 1996).

He pointed out that «during periods of rising rates, Value generally has outperformed.»

During periods of rising rates, municipal bonds have historically generated positive performance.

FIGURE 1 below lists the periods of rising rates and the performance of various fixed - income assets during those periods.

In 19 out of 19 periods, the year that followed a period of rising rates brought improved returns for the Bloomberg Barclays US Aggregate Bond Index, with returns between less than 1 % and 35 %, and an average return of more than 9.5 %.

Wherever one may believe the cycle is, one thing that is clear is that in periods of rising rates, large caps benefit most from an alternative weight like equally weighted or pure style, and given longer term size and style premiums exist, these may be strong core choices.

For example, high - yield bonds have historically tended to fare well during periods of rising rates.

During periods of rising rates, municipal bonds have historically generated positive performance.

Data Sources: Morningstar, Ned Davis Research, 1/18 We defined a period of rising rates by a 20 % change in the 10 - year U.S. Treasury yield.

Offers investors the potential for total return in different market environments — including periods of rising rates

To add to the confusion, the fund the OP asked about has other components that seem to have negated the price drop that should have occurred during a period of rising rates.

This ensures there is always debt to be rolled over at current market interest rates, limiting investor exposure to capital losses during periods of rising rates.

The Federal Housing Administration Monday said it will take advantage of its healthy mortgage insurance fund to reduce the cost of new loans, part of an Obama administration effort to help low - income and first - time homebuyers in a period of rising rates.

Portfolio laddering is a traditional bond market strategy for investors during periods of rising rates.

In a period of rising rates, these funds will see their positions decline in market value.

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.

However, this is a favorable outcome in a period of rising rates.

Overall, staying on the shorter end of the maturity schedule can help the bond investor avoid negative bond returns, and provide for a pick - up in yield during a period of rising rates.

Finally, there is reinvestment risk, which takes place in a period of rising rates when an investor must reinvest a bond that has matured, for example.