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Interest Rates and Your Portfolio

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How “Liftoff” Could Impact Your Investments

In this new video commentary from Chief Fixed Income Strategist, Guy LeBas, he explains what the term “liftoff” means and how it may impact your invest portfolio.

Click here to view the PDF.


What if Rates Don't Rise?

Just as important as the question of “What if interest rates rise?” is the opposing corollary: “What if they don’t?”

In this segment of our “Interest Rates and Your Portfolio” series, we discuss:

  • The potential triggers for higher interest rates
  • The implications of low interest rates on investors' portfolios

Click here to view the PDF.


Liquidity and Your Portfolio

The “liquidity” of an investment—that is, the ability to sell without having to cut the price aggressively—is an important concern today for investors, as we continue to see a reduction in market liquidity.

In this segment of our “Interest Rates and Your Portfolio” series, we discuss:

  • Factors that affect market liquidity.
  • The liquidity of various investments and asset classes.
  • The importance of considering liquidity risk in building a portfolio, depending on the particular investor.

Click here to view the PDF.


Interest Rates and Your Portfolio: Inflation

As part of our interest rates commentary last year, we discussed potential causes of a rise in rates. The list included higher inflation, greater supply of bonds, reduced demand for bonds, and Federal Reserve action. Since then, rates did rise from May through December 2013, then fell back down again to where we are today. The main source of those moves was Fed action - but now, with the Fed's policy plans clear, there are three remaining causes behind potential moves in rates.


In this segment of our "Interest Rates and Your Portfolio" series, we'll examine one of those remaining factors - inflation. Our analysis covers how bonds and interest rates are affected by inflation, and ways you can reduce the impact of inflation on your portfolio. Click here to view the PDF


What's in Store for Interest Rate-Sensitive Equities?

With interest rates on bonds still near historically low levels, many investors have turned to high dividend-paying equity securities for their income needs. In this segment of our “Interest Rates and Your Portfolio” series, we will examine some of the risks that investors face in several of the major interest rate-sensitive equity sectors. This analysis will cover the Utility and Telecom sectors of the economy, in addition to Real Estate Investment Trusts (REITs) and Energy Master Limited Partnerships (MLPs). Click here to view the PDF.