Hedging Interest rate risk
Posted: October 10th, 2018, 8:51 am
Not sure that this is the right place but it is more liberal than the other board .
I've been wondering about interest rate risk on my HYP and if there is an efficient way of hedging it for the private investor and which funds products I shoukd be looking at
Looking at my portfolio I see a lot of downside risk shoukd interest rates rise, both in terms of companies carrying large amounts of debt and also the likely flight of income investors moving from high yield to cash/bonds as rates rise.
I think it would be remiss of me not to explore this avenue. I'm not interested in derivative type instruments but looking for investments that are likely to outperform on a higher interest rate risk environment. I'm not convinced by Banks here as a hedge.
I've been wondering about interest rate risk on my HYP and if there is an efficient way of hedging it for the private investor and which funds products I shoukd be looking at
Looking at my portfolio I see a lot of downside risk shoukd interest rates rise, both in terms of companies carrying large amounts of debt and also the likely flight of income investors moving from high yield to cash/bonds as rates rise.
I think it would be remiss of me not to explore this avenue. I'm not interested in derivative type instruments but looking for investments that are likely to outperform on a higher interest rate risk environment. I'm not convinced by Banks here as a hedge.