FINRA New Investor Alert: Duration - What an Interest Rate Hike Could Do to Your Bond Portfolio

FINRA has issued a new Investor Alert called Duration - What an Interest Rate Hike Could Do to Your Bond Portfolio. This Alert helps investors understand the importance of duration risk. "With interest rates hovering near all-time lows, investors should make sure they know their duration numbers. Whether investors own individual bonds or bond funds, they need to understand that outstanding bonds with a low interest rate and high duration may experience significant price drops if interest rates rise," said Gerri Walsh, FINRA Vice President of Investor Education.

View Alert in full here (links externally to FINRA website).See also: Press Release.