Why the fed is doing rate hikes

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  1. Assume you are the manager of a $100 million portfolio of corporate bonds and you believe interest rates will rise. What adjustments should you make to your portfolio based on your beliefs?
  2. In the current economic environment, if you want to invest in bonds, in what types of bonds would you invest your money, long-term bond or short-term bond or high coupon bond or zero coupon bond and why?
  3. Why the Fed is doing rate hikes? What is the impact of rate hikes on real economy, such as inflation, employment, rents, mortgages, housing market, etc.? Use SVB as an example. what were SVB's key assets before its collaps? Why its assets lost market value?

Reference no: EM133432265

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