
Mind the (Fixed Income) Gap
In the early days of my career as an investment professional, you could walk into your local bank and buy a 9% Certificate of Deposit. Today, that income staple is extinct. What was once a fairly cyclical pattern–Interest rates go up, interest rates go down–has steadily declined to flatline. And while low borrowing costs may have been a boon to many borrowers, it has become the bane of savers and retirees. This article discusses that decline and solutions we apply to “fill the gap.”