Why Own Bonds

Learn the five things our Chief Fixed Income Strategist believes you should think about before you sell your bonds.

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What Bond Investors Need to Know Today

With the potential for rising interest rates, you may be thinking about selling your bonds just in case their prices should start to fall. In the “Why Own Bonds?” report, Brian Rehling, Co-Head of Global Fixed Income Strategy at Wells Fargo Investment Institute, discusses five considerations he believes bond investors should address before they sell. Key points covered include:

  • Performance. You may actually find a rising-rate environment to be profitable if you look at total return.
  • Diversification. If you move away from bonds, your portfolio is likely to become more concentrated in other investments.
  • Volatility. With less fixed income, you could be in for a bumpier ride.
  • Liquidity. Bonds can offer an effective strategy for having money when you need it.

Get This Valuable Information

This report contains useful information for bond investors. It can be especially beneficial when you meet with your Financial Advisor to determine the adjustments, if any, to make to your fixed income investments to help position them for the possibility of rising interest rates.

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Investing in fixed income securities involves certain risks, such as market risk if sold prior to maturity and credit risk, especially if investing in high yield bonds, which have lower ratings and are subject to greater volatility. All fixed income investments may be worth less than original cost upon redemption or maturity. Bond prices fluctuate inversely to changes in interest rates. Therefore, a general rise in interest rates can result in the decline of the value of your investment.

Wells Fargo Investment Institute, Inc. (WFII) is a registered investment adviser and wholly-owned subsidiary of Wells Fargo & Company and provides investment advice to Wells Fargo Bank, N.A., Wells Fargo Advisors, and other Wells Fargo affiliates. Wells Fargo Bank, N.A. is a bank affiliate of Wells Fargo & Company.

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