Fixed-Income Investors Weather Sovereign Debt Crisis

Because of our focus on managing risk, fixed-income clients of Wenning Investments generally fared well during last week’s sovereign debt crisis, even though it created widespread panic in global markets around the world. 

Clients who hold a short bond position (TBT, PST) saw an unfavorable drop in prices, but we believe that the drop is temporary.  The position is held to provide a hedge against rising interest rates.  Interest rates fell last Thursday, but the overall trend is for interest rates to rise. read more

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