- The market expects at least four rate hikes beginning in March setting the stage for a tough year for fixed income.
- All else equal, higher yielding asset classes may hold up better as rates rise because a higher level of income earned will help to offset price losses as rates rise.
- Notwithstanding China’s more recent policy direction, emerging markets in general have moved much more quickly to increase interest rates compared to the U.S. and other developed market rates in order to stay ahead of inflation.
For further details see:
Meeting Demand For Income In A Year Of Rising Rates