Municipal fund managers, still reeling from Detroit's bankruptcy, the surge in Puerto Rico yields and a midyear sell-off that was the worst in a quarter-century, are getting their portfolios ready for the next expected hurdle - another spike in interest rates.
They're turning to shorter durations, high-quality or alternative coupon structures - or a combination of these strategies - to protect their holdings from volatility prompted by expectations that the Fed will begin tapering its $85 billion-a-month economic stimulus program in the first quarter.
Register or login for access to this item and much more
All Financial Planning content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access