Historical Look At Bond Prices And Interest Rate Outlook
- By Pat Stout:
Historical Look At Bond Prices & Interest Rate Outlook
A look at four corporate bonds issued in 1954, 1971, 1975 & 1979. The Northern States Power 3.125% due 1984, General Electric (GE) 7.50% due 1996, General Motors (GM) 8.625% due 2005 and the International Business Machines (IBM) 9.50% due 1986. The high and low prices for 1971-1981 and 1982 are shown along with the S&P rating. Following is a review of the ProShares UltraShort 20+ Year Treasury (TBT) and the Pimco 25+ Year Zero Coupon (ZROZ) since 2011. And finally an outlook for interest rates.Fixed income investors have enjoyed a good couple of decades with strong returns versus the stock market. As the saying goes, all good things must come to an end. It may not happen this week, this month or this year. But there will come a time when the fixed income market will inflict pain.
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