To
protect against interest rate risk you can buy bonds that are short (under 3 years) or intermediate (3 - 7 years) in maturity.
Not exact matches
This benefit can make floating -
rate loans an attractive option to help
protect a fixed - income portfolio
against interest -
rate risk.
While U.S. Treasury or government agency securities provide substantial protection
against credit
risk, they do not
protect investors
against price changes due to changing
interest rates.
(The Wall Street Journal: Apr 13, 2015) The «Alternative Investing» advice column in The Wall Street Journal's Wealth Management special section features ProShares High Yield —
Interest Rate Hedged (HYHG) among high yield ETFs that «try to protect against the risk of rising interest rates
Interest Rate Hedged (HYHG) among high yield ETFs that «try to
protect against the
risk of rising
interest rates
interest rates.»
Aims to
protect against rising
rates by reducing the portfolio's potential for concentrated
interest rate risk
To
protect against interest -
rate risk, Fannie Mae uses derivatives that rise and fall in value with
rate changes, though the long - term economic impact of the hedging is negligible.