Additionally, active management through duration tilting and curve positioning are tools to limit, or even benefit from, the effects of rising rates. In addition, prudently adding spread product can potentially offset a rise in rates as spreads tend to be more stable and offer addition interest income carry. For Sage clients, one of the major benefits of active fixed income management continues to be adjusting portfolio characteristics to maximize returns in any interest rate environment.
This article was written by the team at Sage Advisory, a participant in the ETF Strategist Channel.
Disclosures
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