WrapManager's Wealth Management Blog
When life changes, we can help you thoughtfully respond.

Doug Hutchinson

CFA®, Director of Research and Trading

Recent Posts

Evaluating the Relationship Between Bond Investments and Rising Interest Rates: Doug’s Quiz Corner

Posted by Doug Hutchinson | CFA®, Director of Research and Trading

February 16, 2018

What Happens to Bond Investments When Interest Rates Go Up?

Consider this scenario:

Your friend Bob is concerned about what rising interest rates could do to his bond portfolio. He asks for your assistance in evaluating his bond holdings.

In his current bond portfolio, he has the following holdings:

  • $10,000 face value AA rated municipal bond that matures in 3 months and is currently trading slightly below par.
  • $15,000 of a mutual fund that holds investment grade, floating rate bonds.
  • $20,000 of a short-term, investment grade corporate bond ETF which tracks a broad index of hundreds of bonds.
  • $3,000 of a high yield bond ETF that tracks a high yield index of hundreds of bonds.

Bob has a long investment horizon ahead of him and he won’t need any of the funds invested in his bond portfolio for many years. To top it off, Bob also has another $100,000 of his portfolio invested in various equity market investments. 

[+] Read More

Rising Interest Rates Doug's Quiz Corner Bonds

How Inflation and Interest Rate Fears Could Have Been to Blame for Recent Market Volatility

February 8, 2018
Inflation worries caused by a single economic report have led to increasing concern that the economy may be overheated. A rapidly expanding ... [+] Read More

Calculating the Impact of Expense Ratios on Returns: Doug's Quiz Corner

January 19, 2018
How Does An Expense Ratio Impact Returns? Consider this scenario: Your friend Martha has just invested $100,000 in a mutual fund that has ... [+] Read More

A New Era of 401(k) Millionaires

January 10, 2018
Fidelity Investments recently produced research that unveiled a surging population of 401(k) millionaires: women. According to Fidelity’s ... [+] Read More

Test Your Knowledge on Treasury Inflation Protected Securities (TIPS) Bonds - Doug's Quiz Corner

December 15, 2017
Protecting Principal Against Inflation via TIPS Your friend Karen is concerned about inflation increasing so she purchases $1,000 of a ... [+] Read More

After Tax Yield: Doug’s Quiz Corner

November 17, 2017
Quizmaster, Doug Hutchinson, presents his quiz for the month. Here, Doug discusses a strategy for getting a higher after tax yield. ... [+] Read More

Traditional vs Roth IRA Strategies: Doug’s Quiz Corner

October 20, 2017
Quizmaster, Doug Hutchinson, presents his quiz for the month. Here, Doug compares traditional IRA versus Roth IRA contribution strategies.  ... [+] Read More

Accepting Bond Tender Offers: Doug’s Quiz Corner

September 22, 2017
Quizmaster, Doug Hutchinson, presents his quiz for the month. Here, Doug discusses the complexities of bond tender offers. Consider this ... [+] Read More

Foreign Investments Return: Doug’s Quiz Corner

August 15, 2017
Quizmaster, Doug Hutchinson, presents his quiz for the month. Here, Doug discusses returns on foreign investments. [+] Read More

Anticipating Inverse ETF Returns: Doug’s Quiz Corner

July 18, 2017
Quizmaster, Doug Hutchinson, presents his quiz for the month. Here, Doug teaches a lesson on antcipating inverse ETF returns. Consider this ... [+] Read More