The Rising Interest Rate Opportunity

Posted on Aug 22, 2013

Interest rates have risen dramatically (purple line) the past few months. Rising interest rates have thus become the most common client question of ours recently, and for good reason. When market yields go up for your existing bond holdings, their prices then come down. Though we feel most of the upward adjustment in rates is now behind us, it still begs the question: how do we make money in an environment like this? It appears that bond investors have been spooked by the recent interest rate spike, and that fear has spread over to the REIT market as well. REITs are securities that invest in...

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