SEC Investor Bulletin: Interest Rate Risk

The SEC's Office of Investor Education and Advocacy issued an Investor Bulletin to educate investors about interest rate risk: the fundamental principle of bond investing in which interest rates and bond prices move in opposite directions. The SEC explained when market interest rates rise, the price of fixed-rate bonds fall. The SEC also noted that, due to this relationship, it is particularly important for investors to consider interest rate risk when they purchase bonds in a low-interest-rate environment.

See: SEC Investor Bulletin.