The New Fixed Income World
In previous blog posts, I wrote about how the economic and investment world has evolved over the past five years. Now, as the latest Federal Reserve meeting finishes up, I wanted to delve a little more into how the fixed income landscape in particular has changed, thanks in a big part to the actions of the Fed. Here are 3 reasons why it’s not your father’s (or mother’s) fixed income landscape anymore. Intentional negative real short-term interest rates. Since the financial crisis started in late 2008, nominal short-term interest rates have been close to zero and real short-term interest rates have averaged around -1.5%, much lower than their long-term average around 2%. While this isn’t the first time the United States has experienced a lengthy period of negative real rates (remember the 1970s?), it’s arguably the first time in more than 50 years that the Federal Reserve has intentionally been [...] Click here to read the original article on ETFdb.com. Related Posts: Free ETF Trading: Comparing All The Options 2010: Year Of The Bond ETF Hunt For Yield: How Do All The High Yielding ETFs Stack Up Three “Dividend ETFs” That Go Beyond Stocks iShares Launches More High Yield ETFs (GHYG, IYLD)
In previous blog posts, I wrote about how the economic and investment world has evolved over the past five years. Now, as the latest Federal Reserve meeting finishes up, I wanted to delve a little more into how the fixed income landscape in particular has changed, thanks in a big part to the actions of the Fed. Here are 3 reasons why it’s not your father’s (or mother’s) fixed income landscape anymore. Intentional negative real short-term interest rates. Since the financial crisis started in late 2008, nominal short-term interest rates have been close to zero and real short-term interest rates have averaged around -1.5%, much lower than their long-term average around 2%. While this isn’t the first time the United States has experienced a lengthy period of negative real rates (remember the 1970s?), it’s arguably the first time in more than 50 years that the Federal Reserve has intentionally been [...]

Click here to read the original article on ETFdb.com.

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