Evaluating interest rate risk in your fixed income portfolio
The Interest Rate Sensitivity Illustrator is part of the Fixed Income Analysis tool and allows you to see how interest rate changes may affect the value of your individual positions and your overall portfolio.
In general, the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk, liquidity risk, call risk, and credit and default risks for both issuers and counterparties. Any fixed income security sold or redeemed prior to maturity may be subject to loss.