Rising interest rates have many investors concerned about the volatility of bond prices. Short-term municipal bonds can address these risk concerns because they are much less sensitive to changes in interest rates than longer-term bonds.
Oppenheimer Short Term Municipal Bond focuses on investment-grade bonds and seeks to maintain an average effective maturity of two years or less. With an established track record of navigating volatile bond markets, the fund is designed for investors who are seeking attractive returns on a risk-adjusted basis.
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Mutual funds and exchange traded funds are subject to market risk and volatility. Shares may gain or lose value.
Fixed income investing entails credit and interest rate risks. Interest rate risk is the risk that rising interest rates, or an expectation of rising interest rates in the near future, will cause the values of a fund’s investments to decline. Risks associated with rising interest rates are heightened given that rates in the U.S. are at, or near, historic lows. When interest rates rise, bond prices fall and a fund’s share price can fall. Municipal bonds are subject to default on income and principal payments.
These views represent the opinions of OppenheimerFunds, Inc. and are not intended as investment advice or to predict or depict the performance of any investment. These views are as of the publication date, and are subject to change based on subsequent developments.