RISING RATE PLAYBOOK
- October 4, 2013 |
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CEO Update
Related content Falling bonds pose risks for associations Related content Rising rate playbookHigher bond yields would have a significant impact on association reserve portfolios, investment experts say: Bonds prices fall as yields rise; Associations should not make sudden or drastic portfolio moves in response to risk; Fixed-income investments still play a key role in diversification and risk reduction; Shorter-term bonds have less risk when rates increase but also have lower yields; Consider the impact of rising rates on expenses such as adjustable-rate mortgages; Associations should gauge potential reserve losses and warn boards of directors; Bonds in years… Read More
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