Trouble With the (Yield) Curve
Because interest rates do not always move in tandem, investors need to pay close attention to the yield curve and spreads to gauge risk.
A version of this article was originally published on Oct. 8, 2014.
The term "interest rate" continues to strike fear into the hearts of bond investors. These fears have only intensified as the timing of an increase to the federal-funds rate has (supposedly) drawn nearer. After all, as interest rates rise, most bonds' prices decline.
Thomas Boccellari does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.