Hedging interest rate risk with bonds
Bonds: Interest Rate Risk. When interest rates rise, bond values decrease. Let's say you bought an individual bond that was paying 3% for $1,000. If interest 31 Mar 2015 Aim to structurally limit interest rate risk via a duration-hedged approach, which keeps the bond portfolio itself intact but hedges interest rate risk An Active Approach to Managing Credit and Interest-Rate Risk Cohen & Steers can engage in interest-rate hedging if and when we fnd it desirable and/or necessary. to those of investing in bonds, including credit risk and interest-rate risk.