Investors Have Been Selling Bonds Since the Election, Could Spell Trouble for Borrowers
Market turmoil in the bond market could lead to higher rates on consumer loans, says one portfolio manager.
The bond market has been rattled since the presidential election, with investors selling their debt, pushing yields higher. Putri Pascualy, a portfolio manager at PAAMCO, explains that investors are concerned that President-elect Trump's proposals for fiscal stimulus and tax cuts will be inflationary for the economy. She says consumers with adjustable rate mortgages or adjustable rate student loans should consider locking up their current interest rate, especially as it's likely that rates will continue to rise. Pascualy manages money for institutional investors.
