Municipal managers and strategists, still reeling from Detroit's bankruptcy, the surge in Puerto Rico yields, and a mid-year sell-off that was the worst in a quarter century, are getting their portfolios ready for the next expected hurdle as 2014 approaches 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 Federal Reserve Board will begin tapering of its $85 billion-a-month economic stimulus program in the first quarter.
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