Recently, FINRA, the Financial Industry Regulatory Authority Inc., issued an Alert telling investors that if interest rates rise, “outstanding bonds, particularly those with a low interest rate and high duration, may experience significant price drops.”
Many big investors have already have warned that risk in the bond market is rising. However, last month's slight move in interest rates made FINRA's warning more important.
Posted on Finra's website, the Alert said a bond fund with a 10-year duration will decrease in value by 10% if rates rise 1 percentage point. There are many investors who don't realize they can lose money in what they think are safe bond funds.
FINRA urges bond fund investors to check on the duration in the product's fact sheet. The FINRA Alert points out that not even short-duration bonds are free of risk.
“Bonds and bond funds are subject to inflation risk, call risk, default risk and other risk factors,” the warning said.
FINRA sanctioned securities broker Lester Joel Hochler [CRD: 3209012, McDonough, Georgia], according to publicly available information found on Financial Industry Regulatory Authority (FINRA) BrokerCheck. Hochler worked for Cape Securities Inc. from March 17, 2016, to April 14, 2026, and joined American Global Wealth Management Inc. on December 5, 2019. He was also associated with G.F. […]
Investors might have sustained losses due to securities broker Roger Allan Roemmich [CRD: 1293322, Red Bank, New Jersey], given the public information on Financial Industry Regulatory Authority (FINRA) BrokerCheck. Roger Roemmich worked for Alexander Capital LP from October 2, 2020, to May 30, 2025, as a general securities representative. See below to learn more about […]
Investors potentially incurred losses because of securities broker Avinesh Kumar Shankar [CRD: 6232970, Roseville, California], based on disclosures on Financial Industry Regulatory Authority (FINRA) BrokerCheck. Avinesh Shankar worked for Pruco Securities LLC from October 9, 2019, to March 13, 2024. Investors are encouraged to continue reading to find out more about the disclosures involving Shankar […]
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