Sentences with phrase «portfolio against interest rate risk»

For many investors, hedging at least a portion of their fixed income portfolio against interest rate risk will always make sense.

Not exact matches

This benefit can make floating - rate loans an attractive option to help protect a fixed - income portfolio against interest - rate risk.

Providing a way to diversify your trading portfolio and hedge against risk, bonds allow you to take a position on future interest rate movements while leveraging the security and stability of government treasuries.

BlackRock is urging investors to rethink their bonds in 2015, and part of that means using flexible fixed income strategies to guard against interest rate risk and credit events, while also enhancing the diversification of your fixed income portfolio.

Providing a way to diversify your portfolio and hedge against risk, bonds allow you to take a position on future interest rate movements while leveraging the security and stability of government treasuries.

They offer diversified portfolios of bonds, each with a built - in hedge against interest rate risk.

To begin with, it may help for Alice to read «Risk Less and Prosper: Your Guide to Safer Investing,» by Zvi Bodie and Rachelle Taqqu, in which the authors argue for accumulating TIPS in one's portfolio, because TIPS provide inflation protection and hedge against interest rate rRisk Less and Prosper: Your Guide to Safer Investing,» by Zvi Bodie and Rachelle Taqqu, in which the authors argue for accumulating TIPS in one's portfolio, because TIPS provide inflation protection and hedge against interest rate riskrisk.

But held in tandem with bonds, they can offer a way to hedge against interest - rate risk and might cushion part of a portfolio against stock - market volatility

Adding to the complexity is the need for both Fannie and Freddie to insure their portfolios against interest - rate risk — in particular, the danger that borrowers may pay back their loans early, if interest rates fall, leaving the companies with money to reinvest at a lower rate.

TIPS can provide some protection against unexpected inflation, and is widely - used in bond portfolios to diversify interest rate risk.

Aims to protect against rising rates by reducing the portfolio's potential for concentrated interest rate risk