This podcast episode provides an in-depth analysis of interest rate risk and its profound impact on bond prices, particularly amidst the challenging market conditions of 2022, where rising interest rates significantly influenced bond performance. Karen Verra elaborates on vital concepts such as duration and the implications of the inverted yield curve, highlighting how historical trends have shaped investor behaviors. As the market anticipates potential rate cuts, strategic insights for fixed income investors become crucial, underscoring the importance of allocations that balance liquidity and long-term growth in a fluctuating environment.
