Owning a Portfolio of Actively Managed Individual Bonds will be Critical in a Rising Rate Environment. For advisors that allocate to fixed income (and we assume that to be most), the days of simply buying bond mutual funds/ETFs and having…
By now, we are sure you have heard someone in the financial industry declare that, “interest rates are rising.” We believe the proper response to that statement should be: What interest rates are rising? In the fixed income world, the…
Two key features for individual bond investors to pay attention to are coupon and yield. Coupon represents the annual cash flow an investor will receive as the bondholder. For example, an investor who owns a bond with a 4% coupon…