KRE - B. Riley's 6.88% Bonds: An Investment For Whatever The Fed Throws At Us
For fixed income investors the decisions of the Federal Reserve are an important signal regarding how to allocate their funds. Generally speaking, if the Federal Reserve (the Fed) raises the Federal Funds Rate then prices of bonds in your portfolio will decrease. This also means that there is a buying opportunity as yields will increase as bonds prices decrease. This decrease in prices is magnified the longer the duration of a bond (a bond that matures in 2 years will not decrease in price as much as a bond that matures in 10 years). This