With corporate bond and U.S. Treasury rates near 100-year lows after a 30-year steady decline, investors everywhere are pondering the consequences if interest rates begin to rise.
Thirty-one years ago the yield on corporate Aaa bonds reached its 100-year peak of 15.5%. That date was in September, 1981, and rates for corporate bonds and U.S. Treasuries have fallen ever since, with both rates resting near 100-year lows today.
Pension plan sponsors face significant challenges. Retirement obligations continue to increase, and the two major equity market set-backs in 2000 and 2008 have produced widening funding gaps.
Managed futures is one of the oldest and most established alternative investments, yet many investors are unfamiliar with the strategy’s performance traits.