Now that the Federal Reserve has raised interest rates and is on course to do so several times in 2016, fixed income investors are evaluating avenues for coping with higher rates. Rising rates need not chase investors from all bond ETFs. Some have been holding up nicely while others may have been beaten up more than warranted given the ability of those funds to remain sturdy if rates continue to rise.
One of their primary destinations should be convertible bonds.
Convertible bonds earn that moniker because they can be converted into shares of the issuer's common equity. Convertibles, which are seen as having equity-like traits, have actually outperformed stocks during periods of rising rates as well being the top-performing fixed ...
/www.benzinga.com/trading-ideas/long-ideas/15/12/6070229/convert-to-convertibles-as-rates-rise alt=Convert To Convertibles As Rates Rise>Full story available on Benzinga.com
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