Fixed market securities have been in fashion since the financial meltdown of 2008. Investors have shown more confidence in bonds to secure stable returns by undertaking a relatively risk-free position. Recently, the bond market has experienced a bullish trend with corporate bonds holding a distinguished position. The yields offered by the corporate bonds were above government bonds and at the same time, less risky than equity investment. Last year, U.S. corporate bonds returned 9.8%, according to the Barclays Indexes.
However, as the US economy takes a route to recovery the trend is expected to reverse. The Financial Industry Regulatory Authority expects bond prices to fall as interest rates experiences an upward trend. The rise in interest rates will cause the...
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