Rising Rates: Is it Time to Abandon Fixed Income? - American Institute of CPAs
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The first quarter of 2022 was worst performing period for bonds in the last 40 years. The Fed is committed to raising rates. Inflation is raging and no longer appears to be transient. Does this incipient era of rising rates mean that advisors should abandon fixed income? We'll explore the value that bonds can provide in traditional asset allocations, and assess the alternatives, including TIPS, floating rate bonds, alternatives and hedged strategies.
Learning Objectives:
Analyze the market and economic factors driving interest rates
Identify how traditional, fixed-rate bonds will perform in a rising rate environment
Determine whether advisors should embrace TIPS, floating rate bonds, or other alternatives to fixed rate bonds