Asset Dedication’s Reaction to the Belief that Fears over Rising Rates are Overblown

Asset Dedication’s Reaction to the Belief that Fears over Rising Rates are Overblown

In this letter to the editor of Advisor Perspectives, Asset Dedication’s Stephen J. Huxley, PHD responds to Joe Tomlinson’s article, Retirement Portfolios: Fears over Rising Rates are Overblown. In Steve’s response, he discusses some the weaknesses of the underlying assumptions Joe Tomlinson uses when talking about bond funds in rising interest rate environments. Click here to read the letter >>>

Beauty of bonds lost in stampede to the exits

Beauty of bonds lost in stampede to the exits

In Jeff Benjamin’s article, Beauty of bonds lost in stampede to the exits, he talks about how investors are losing sight of the need for a volatility buffer and may be leaving bonds for far riskier bandwagons.  In the process, Jeff quotes our own Brent Burns saying “For the folks who are really trying to find noncorrelated and less volatile investments, bonds fit that profile, and people own bonds because there is some kind of financial plan, whether it is stated or not,”. Read the full article here >>>

Fixed-maturity bond funds may ease rate worries

Fixed-maturity bond funds may ease rate worries

For bond investors worried about what will happen to their principal when interest rates rise, a fixed-maturity bond fund is one solution.

These products, also called defined-maturity or end-date funds, offer the diversification of a bond fund with the known maturity date of an individual bond.

Each fund sets an end date and buys bonds that mature on or shortly before then. Any new money that comes into the fund is put into the same type of bond. Interest payments on the bonds are paid out monthly to shareholders. Read More…