As seen in prior cycles, changes in short - term interest
rates alone had yielded little effect on financial conditions, as buoyant risk sentiment strengthened equities,
corporate bonds, as well as
various forms of «esoteric» investments.
Investing in fixed income securities (
bonds, debt securities) are subject to
various risks, including changes in interest
rates, credit quality, market valuations, liquidity, prepayments, early redemption,
corporate events, tax ramifications and other factors.