Concerns About Rising Interest Rates

For the last five years interest rates have been expected to rise; this year they may actually do so. These changes can affect the value of financial portfolios, especially fixed income investments. Interest rates and the value of existing bonds share an inverse relationship — when interest rates increase, bond prices fall, triggering potential losses in bond portfolios.

In his recent commentary, Craig Bishop, Senior U.S. Fixed Income Strategist with the RBC Wealth Management Portfolio Advisory Group, discusses the latest concerns over the timing of the first rate hike, the importance of Janet Yellen’s guidance, the impact from volatile market conditions and the importance of interest rate awareness.

Read the full commentary on how a potential interest rate increase could affect your portfolio. For additional information, contact your RBC Wealth Management financial advisor or use the advisor locator tool to find an advisor near you.

Important disclosure information about Royal Bank of Canada (RBC) and RBC Capital Markets, LLC