Twin Bills
Rising Rates Spare No Bonds
Companies offer little help when government debt stumbles.
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U.S. interest rates are at historic lows. The U.S. economy appears to be gaining strength. The Federal Reserve is determined to raise rates. Many investors think that’s a cocktail for higher interest rates and trouble for U.S. bonds.
There’s no shortage of purported solutions for worried bond investors. High-dividend stocks and liquid alternatives are two commonly cited cures for the rate-hike blues. Charles Schwab recently nodded to another remedy: Swap those boring government bonds for corporate ones.