Bonds

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Rising Rate Jitters: Why?

Submitted by Lewis J. Walker on Monday, August 24, 2015 - 9:00am

The Federal Reserve may raise interest rates slightly this fall. But all in all, deflationary pressures, lower rates abroad and threats from a strong dollar do not portend sustained and significant Fed hikes.

Why Recession Odds Are Low

Submitted by Nicholas Atkeson and Andrew Houghton on Monday, August 10, 2015 - 9:00am

After six years of economic growth, shouldn’t we be looking for a downturn? Not necessarily. Several indicators – interest rates, bank stocks and capital spending – give us reasons for optimism, for the time being.

Not the Time for Bond Funds

Submitted by Raul Elizalde on Wednesday, August 5, 2015 - 9:00am

Bond funds are not the place to be if interest rates start to rise in earnest. Unlike buyers of individual bonds, who can ride out the resulting value drops until their holdings mature, fund investors can get slammed. Their funds, which must routinely buy and sell underlying assets, suffer the full force of the price drop.

Time for Riskier Investing?

Submitted by Alan Hartley on Monday, July 27, 2015 - 9:00am

After several years of solid stock market returns, you may actually be less afraid of risk. Maybe you question your asset allocation and strongly consider more stocks and other supposedly riskier assets. When balancing the temptation of ballooning returns with prudent and tested patience, though, choose the latter.

The Coming Bond Debacle

Submitted by Brenda Wenning on Monday, June 15, 2015 - 9:00am

The price volatility of government debt worldwide is worrisome – among other things because it might result in failures of bond auctions that could harm global markets. Even scarier is the widespread use of derivatives to hedge the risk of this debt, meaning the fallout could be still worse should this insurance fail to pay off.

Stocks Up, Bonds Down?

Submitted by Nicholas Atkeson and Andrew Houghton on Wednesday, July 1, 2015 - 9:00am

Since the financial crisis, when both stocks and bond prices took a pounding, the normal pattern returned: Stocks zig when bonds zag. That usually meant that trouble in the world tanked stocks and buoyed bonds, particularly Treasuries. Nowadays, though, stocks and bonds may end up trading places.

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