Consider the Source: Fixed-Income Alternatives

Over the past three to four decades, we have been experiencing a declining interest rate environment. Due to the inverse relationship between interest rates and bond prices, this has caused bonds to be worth a little more each day, making bonds a source of stability in portfolios in a rising interest rate environment. However, this all goes out the window once interest rates begin to rise.

So, what can investors do as we prepare to cycle into a rising interest rate environment? In the first episode of his new “Consider the Source” video series, Omnia Family Wealth Co-Founder and Chief Operating Officer Michael Wagner offers some investment options for your portfolio that, regardless of interest rates and volatility, can act as a source of stability.

Two specific examples Wagner mentions that can protect portfolios in a rising interest rate environment include:

  • A sleeve of high quality, low beta hedge funds
  • Senior-secured loans to performing real estate that pay a floating rate

During the video, Wagner emphasizes the importance of having a stable source, other than bonds, of income in your portfolio. Investors are entering into a rising rate environment and investors need to get creative about the players in their portfolio and the roles they are playing.

As always, please do not hesitate to contact us with any questions. We are available via email or phone at (305) 602-9080.

RELATED ARTICLES

Impact Investing Part 1: What Is Impact Investing and Why Should Investors Care?

Impact Investing Part 1: What Is Impact Investing and Why Should Investors Care?

Read More
Consider the Source – Philanthropy to Investing: Where Does Impact Fall?

Consider the Source – Philanthropy to Investing: Where Does Impact Fall?

Read More
Consider the Source: Commodities

Consider the Source: Commodities

Read More
Consider the Source: Irrational Markets

Consider the Source: Irrational Markets

Read More
Consider the Source – 2021 Investment Outlook: Post-COVID

Consider the Source – 2021 Investment Outlook: Post-COVID

Read More
Consider the Source – 2021 Investment Outlook: Economic Cycles

Consider the Source – 2021 Investment Outlook: Economic Cycles

Read More
Consider the Source: Plans, Plans, Plans

Consider the Source: Plans, Plans, Plans

Read More
Consider the Source – 2021 Investment Outlook: Inflation

Consider the Source – 2021 Investment Outlook: Inflation

Read More
What Is a SPAC?

What Is a SPAC?

Read More
©2021 Omnia Family Wealth, All Rights Reserved.