Years of money printing and bond buying by central banks has pushed up bond prices, leading to unattractively low yields in many areas. But now the loose global monetary policy environment, constructed by policymakers in the wake of the financial crisis, has started to tighten. And some central banks – most notably the US Federal Reserve – have started raising interest rates and reducing quantitative easing (QE). These changes could lead investors to lose capital as bond yields rise and prices fall.
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