Bond Yields Around a First Rate Hike
August 26, 2014 -Historically, bond yields have begun to move
more forcefully four to six months ahead of a
first rate hike from the Fed.
We believe the rise in interest rates may begin sooner this cycle due to lower yields and more expensive valuations.
We favor capitalizing on year-to-date bond strength and recommend a defensive posture consisting of short to intermediate bonds.