Rising Rates: Managing liquidity through periods of rising interest rates
Rising rate environments can challenge even the most sophisticated fixed income investor. As a new Fed rate hiking cycle unfolds and regulatory reform takes effect, investors need to evaluate the implications for their short-term investments.
1 Investment Company Institute website.
2 Markit five-year CDX North America Investment Grade index spread widened eight bps (Source: Bloomberg) and the Barclays U.S. Aggregate option adjusted spread (OAS) widened five bps (Source: Barclays).