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Find Income That's Not at the Mercy of the Fed

Highlights

  • Many investment grade bonds now yield less than the rate of inflation
  • Compounding the problem, many of these bonds lose value when rates go up
  • Counter these interest rate risks with credit risks designed to help generate income

With interest rates at rock bottom and many investment-grade bonds yielding less than inflation, investors need to look beyond traditional sources of income. Krishna Memani, CIO, Fixed Income, has a different approach to the income famine.

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Mutual funds are subject to market risk and volatility. Shares may gain or lose value. Fixed income investing entails credit risks and interest rate risks. When interest rates rise, bond prices generally fall, and a fund’s share price can fall. Below-investment-grade (“high yield” or “junk”) bonds are more at risk of default and are subject to liquidity risk. Foreign investments may be volatile and involve additional expenses and special risks, including currency fluctuations, foreign taxes and political and economic uncertainties. Emerging and developing market investments may be especially volatile.

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Shares of Oppenheimer funds are not deposits or obligations of any bank, are not guaranteed by any bank, are not insured by the FDIC or any other agency, and involve investment risks, including the possible loss of the principal amount invested.

Shares of Oppenheimer funds are not deposits or obligations of any bank, are not guaranteed by any bank, are not insured by the FDIC or any other agency, and involve investment risks, including the possible loss of the principal amount invested.

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