Rosenberg: Rate Changes Will Change Bond Investing

The video discusses the impact of inevitable rate hikes on bond prices, contrasting current conditions with last year's quantitative easing. It highlights the shift from long-term to short-term interest rates, emphasizing the importance of investment maturity perspectives. Investors are advised against repeating last year's strategies, as short-term rates are expected to rise. The concept of convexity and its effect on the yield curve is explained, with a focus on short maturities. The video also covers asset classes like high yield and bank loans, suggesting cautious, tactical approaches in the current market environment.

What is the significance of the end of quantitative easing in relation to interest rates?

How are investors reacting to the changes in interest rates compared to last year?

What are the implications of rising short-term interest rates for investors?

What does the term 'convexity' refer to in the context of interest rates?

How has the yield on high yield and bank loans changed over the course of the year?