fixed rate bonds Archives
Today Personal Finance Editor Philip Springer recommends a bond fund for today’s interest rate environment.
“Fidelity Floating Rate High Income (FFRHX) should be the least impacted of our [bond fund] holdings when quantitative easing (QE) ends.
“The fund holds a portfolio of higher-quality, more liquid bank...
“The carry trade is alive and well. Mortgage REITs borrow short and lend long, capturing the spread between investment and borrowing rates, known as the net interest margin. This fuels big distributions to shareholders. mREITs utilize repurchase agreements, a form of very short-term borrowing,...