Fixed Income Perspectives: Risk Management
Fixed income returns are derived from two sources, coupon payment and price change. While the foundation of fixed income is the predictability and practicality associated with receiving a consistent income stream, changes in interest rates and credit spreads cause the price of fixed income securities to fluctuate on a daily basis. Like any asset class, fixed income is vulnerable to periods of increased volatility and downward pressure on prices. Today, investors are struggling to digest the impact of a potential shift in the Fed’s interest rate policy and concerns associated with a maturing credit cycle.
- DATE: December 1, 2015
- TYPE: PDF
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