The big news for advisors this morning are comments by FINRA CEO Richard Ketchum, urging investment advisors to warn clients of the growing risk in bonds and fixed income investments.
“It’s clear that interest rates have far more room to go up than down,” said Ketchum at FINRA’s annual conference last week in Washington DC. His comments follow alerts that FINRA has sent to advisors noting bond risk, sparking concern about a new potential wave of arbitration claims against advisors.
Riskalyze launched Interest Rate Stress Testing as a part of its tools for advisors earlier in 2013. Using the tool, our advisors apply an interest rate forecast to any bond funds in the portfolio, allowing them to easily show prospective clients the potential effect that rising interest rates can have on their holdings.
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