Finra warned investors that if the interest rates rise - as most pros expect - bond investors could be slammed by long duration, writes Dan Jamieson in a Feb. 14th., 2013 article for InvestmentNews.com
FINRA, the Financial Industry Regulatory Authority Inc. in an investor alert, told investors that in the event of rising interest rates, “outstanding bonds, particularly those with a low interest rate and high duration may experience significant price drops.”
FINRA gave the example of a bond fund with 10-year duration will decrease in value by 10% if rates rise one percentage point, the alert warns.
FINRA added that bond-fund investors can find measures of duration in a bond fund's fact sheet, and individual bond investors can check with their investment professionals, the bond's issuer, or they can use an online calculator to get the figure.
Short duration doesn't mean risk-free, the alert says.
“Bonds and bond funds are subject to inflation risk, call risk, default risk and other risk factors,” the warning says.
Bonds are not without risk, however in many instances bonds are presented as the safe alternative.
If you find yourself in this position, call Soreide Law Group for a free consultation on how to potentially recover your financial losses: 888-760-6552.
Investors apparently complained about securities broker Devlin H. Dwyer. [CRD: 6634140, Atlanta, Georgia], based on public information on Financial Industry Regulatory Authority (FINRA) BrokerCheck. Dwyer worked for Patrick Capital Markets LLC from November 22, 2016, to March 9, 2026. See below to find out more about the disclosures involving this securities broker. Patrick Capital Investor […]
Investors have reportedly disputed the sales practices of securities broker Jennifer Lasser Eilers (also known as Jennifer Ann Costello and Jennifer Ann Lasser) [CRD: 2410129, Niles, Illinois], according to disclosures located on Financial Industry Regulatory Authority (FINRA) BrokerCheck. Jennifer Eilers worked for BMO Harris Financial Advisors Inc. from February 19, 2021, to March 24, 2021, […]
Investors potentially experienced sales practice violations by securities broker Gabriel D. Candea (also known as Gabe Candea) [CRD: 5531840, Santee, California], given the publicly available information found on Financial Industry Regulatory Authority (FINRA) BrokerCheck. Gabriel Candea worked for Emerson Equity LLC from January 14, 2022, to the present as a securities broker in Irvine, California, […]
Phone:
Fax: 1-954-760-6553
Email: info@securitieslawyer.com