{"id":892,"date":"2016-01-12T21:13:25","date_gmt":"2016-01-12T21:13:25","guid":{"rendered":"http:\/\/wdsinvest.com\/?page_id=892"},"modified":"2017-01-23T21:58:27","modified_gmt":"2017-01-23T21:58:27","slug":"fixed-income-should-we-worry","status":"publish","type":"page","link":"https:\/\/wdsinvest.com\/fr\/wds-resources\/quarterly-exchange\/fixed-income-should-we-worry\/","title":{"rendered":"Fixed income: Should we worry about rising interest rates?"},"content":{"rendered":"<div class=\"wpb-content-wrapper\"><div data-vc-full-width=\"true\" data-vc-full-width-init=\"false\" class=\"vc_row wpb_row vc_row-fluid vc_custom_1452626379853 vc_row-has-fill\"><div class=\"wpb_column vc_column_container vc_col-sm-12\"><div class=\"vc_column-inner\"><div class=\"wpb_wrapper\">\n\t<div class=\"wpb_raw_code wpb_raw_html wpb_content_element\" >\n\t\t<div class=\"wpb_wrapper\">\n\t\t\t<p style=\"text-transform:uppercase;\">March 2013<\/p>\n<h1 class=\"subheader-h1\"><strong>In this edition\u2026<\/strong><\/h1>\n<h1 class=\"subheader-h1\"><a href=\"#qe-fixed-income-6\">Fixed Income: Should we worry about rising interest rates?<\/a><\/h1>\n<h1 class=\"subheader-h1\"><a href=\"#qe-results-6\">RESULTS at a glance<\/a><\/h1>\n<h1 class=\"subheader-h1\"><a href=\"#qe-aa-6\">Ask & Answer \u2013 When should you take a capital loss on a bond?<\/a><\/h1>\n<h1 class=\"subheader-h1\"><a href=\"#qe-reads-6\">WDS Reads \u2013 ENDGAME by John Mauldin and Jonathan Tepper<\/a><\/h1>\n<h1 class=\"subheader-h1\"><a href=\"#qe-dyk-6\">Did You Know? The origin of \"bull\" and \"bear\" terms<\/a><\/h1>\n\t\t<\/div>\n\t<\/div>\n<\/div><\/div><\/div><\/div><div class=\"vc_row-full-width vc_clearfix\"><\/div><div class=\"vc_row wpb_row vc_row-fluid\"><div class=\"wpb_column vc_column_container vc_col-sm-12\"><div class=\"vc_column-inner\"><div class=\"wpb_wrapper\"><div class=\"vc_empty_space\"   style=\"height: 40px\"><span class=\"vc_empty_space_inner\"><\/span><\/div><\/div><\/div><\/div><\/div><div class=\"vc_row wpb_row vc_row-fluid\"><div class=\"wpb_column vc_column_container vc_col-sm-12\"><div class=\"vc_column-inner\"><div class=\"wpb_wrapper\"><div class=\"vc_row wpb_row vc_inner vc_row-fluid\"><div class=\"wpb_column vc_column_container vc_col-sm-9\"><div class=\"vc_column-inner\"><div class=\"wpb_wrapper\">\n\t<div class=\"wpb_raw_code wpb_raw_html wpb_content_element\" >\n\t\t<div class=\"wpb_wrapper\">\n\t\t\t<p id=\"qe-fixed-income-6\"><span class=\"h3-special\">Fixed Income:<\/span><br><span class=\"h3-special-subheader\">Should we worry about rising interest rates?<\/span><\/p>\n\n<p>Fixed income securities like bonds are usually considered to be less risky than stocks. But bond prices fluctuate in the market just like any other security. Prevailing interest rates are what determine their price in the secondary market where bonds are traded.<\/p>\n\n<p>There are several types of risk that apply specifically to bonds. In a post-financial-crisis world, terms like <em>credit risk<\/em>, <em>liquidity risk<\/em> and <em>interest rate risk<\/em> are used constantly. So it\u2019s not surprising they\u2019ve taken centre stage in investment talk forums. <\/p>\n\n<p>We portfolio managers watch interest rates changes very closely. They can go up and down quickly and cause price fluctuations that affect the overall returns of fixed income securities. The prospect of interest rate risk, in which rising yields trigger price losses for investors, is always near the top of our radar screens.<\/p>\n\n<p>Despite today\u2019s monetary policy and the odd comment from the Bank of Canada about maintaining the status quo, it\u2019s expected that interest rates will rise in the not-too-distant future. Some of the most telling indicators are:<\/p>\n\n<ul class=\"custom-list\">\n<li>Moderate strengthening of the U.S. economy;<\/li>\n<li>Improving employment conditions;<\/li>\n<li>Prevailing interest rates remaining at near-historic lows;<\/li>\n<li>Shifting outlook about this period of unprecedented monetary accommodation, which has made money cheap to borrow for a long, long time; and<\/li>\n<li>Investors' demand for higher yields from companies wanting to sell new bonds.<\/li>\n<\/ul>\n\n<p>When yields change, bond prices change, too. Interest rate risk does not affect all bonds equally. The amount of fluctuation that interest rates can produce in the price of a bond depends on both its <a href=\"http:\/\/financial-dictionary.thefreedictionary.com\/Term+to+Maturity\" target=\"_blank\">term to maturity<\/a> and its <a href=\"http:\/\/financial-dictionary.thefreedictionary.com\/Coupon+Rate\" target=\"_blank\">coupon rate<\/a>. The price differential will be larger when the coupon interest is lower and the time horizon to maturity is longer.<\/p>\n\n<p>Example:<\/p>\n\n<p>The table below illustrates the percentage change in bond prices over a one-, three-, and five-year term to maturity following a rate increase of 2%.<\/p>\n<br>\n<table>\n  <thead>\n    <tr>\n      <th><\/th>\n      <th>1 year<\/th>\n      <th>3 year<\/th>\n      <th>5 year<\/th>  \n    <\/tr>\n  <\/thead>\n  <tbody>\n    <tr>\n        <td><\/td>\n        <td colspan=\"3\">4% Coupon Rate<\/td>\n    <\/tr>\n    <tr>\n        <td>Current price\t 2%<\/td>\n        <td>101.97<\/td>\n        <td>105.80<\/td>\n        <td>109.47<\/td>\n    <\/tr>\n<tr>\n        <td>+2%\t4%<\/td>\n        <td>100.00<\/td>\n        <td>100.00<\/td>\n        <td>100.00<\/td>\n    <\/tr>\n    <tr>\n        <td><strong>% change in price<\/strong><\/td>\n        <td><strong>-1.93%<\/strong><\/td>\n        <td><strong>-5.48%<\/strong><\/td>\n        <td><strong>-8.65%<\/strong><\/td>\n    <\/tr>\n  <\/tbody>\n<\/table>\n<br>\n<p>In our view, the risk regarding interest rates is to the upside. As a strategic response, WDS has shortened maturities to help buffer against interest rate risk and preserve capital. When they\u2019re available, we add quality corporate credits to enhance yield.<\/p>\n\n<p>At least for the time being, high-interest savings accounts provide comparable rates with easy access to funds and no risk to capital. The \u201cgive-up\u201d in yield is relatively small when interest rates are so artificially low. <\/p>\n\n<p>For more information, see  <a href=\"http:\/\/www.getsmarteraboutmoney.ca\/en\/managing-your-money\/investing\/bonds\/Pages\/Risks-of-bonds.aspx#.VpVujpMrKV4\" target=\"_blank\">GetSmarterAboutMoney.ca<\/a> Understanding the risks, which describes the four common risks for bond investors.<\/p>\n\t\t<\/div>\n\t<\/div>\n<\/div><\/div><\/div><div class=\"wpb_column vc_column_container vc_col-sm-3\"><div class=\"vc_column-inner\"><div class=\"wpb_wrapper\">\n\t<div  class=\"wpb_single_image wpb_content_element vc_align_left wpb_content_element\">\n\t\t\n\t\t<figure class=\"wpb_wrapper vc_figure\">\n\t\t\t<div class=\"vc_single_image-wrapper   vc_box_border_grey\"><img loading=\"lazy\" decoding=\"async\" width=\"300\" height=\"228\" src=\"https:\/\/wdsinvest.com\/wp-content\/uploads\/2016\/01\/BondsYieldRisk-300x228.jpg\" class=\"vc_single_image-img attachment-medium\" alt=\"\" title=\"BondsYieldRisk\" srcset=\"https:\/\/wdsinvest.com\/wp-content\/uploads\/2016\/01\/BondsYieldRisk-300x228.jpg 300w, https:\/\/wdsinvest.com\/wp-content\/uploads\/2016\/01\/BondsYieldRisk-192x146.jpg 192w, https:\/\/wdsinvest.com\/wp-content\/uploads\/2016\/01\/BondsYieldRisk-50x38.jpg 50w, https:\/\/wdsinvest.com\/wp-content\/uploads\/2016\/01\/BondsYieldRisk-99x75.jpg 99w, https:\/\/wdsinvest.com\/wp-content\/uploads\/2016\/01\/BondsYieldRisk.jpg 319w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/div>\n\t\t<\/figure>\n\t<\/div>\n<\/div><\/div><\/div><\/div><div class=\"vc_separator wpb_content_element vc_separator_align_center vc_sep_width_100 vc_sep_pos_align_center vc_separator_no_text vc_sep_color_grey vc_custom_1452628286408 wpb_content_element  vc_custom_1452628286408 wpb_content_element\" ><span class=\"vc_sep_holder vc_sep_holder_l\"><span class=\"vc_sep_line\"><\/span><\/span><span class=\"vc_sep_holder vc_sep_holder_r\"><span class=\"vc_sep_line\"><\/span><\/span>\n<\/div><div class=\"vc_row wpb_row vc_inner vc_row-fluid\"><div class=\"wpb_column vc_column_container vc_col-sm-9\"><div class=\"vc_column-inner\"><div class=\"wpb_wrapper\">\n\t<div class=\"wpb_raw_code wpb_raw_html wpb_content_element\" >\n\t\t<div class=\"wpb_wrapper\">\n\t\t\t<p id=\"qe-results-6\"><span class=\"h3-special\">RESULTS<\/span><br\/>\n<span class=\"h3-special-subheader\">at a glance<\/span><p>\n\n<p>Before the ink dried on this edition, another political blunder\u2014this time, the Cyprus deposit tax plan\u2014disrupted global markets and sent investors scrambling yet again. In its simplest terms, the initial plan would impose a tax on depositors\u2019 bank savings. Imagine?!!! The aftermath has not erased stock market gains to date but once more, it\u2019s dampened investors\u2019 enthusiasm for risk-taking. Good news for gold and the U.S. dollar, though, both of which rose on their \u201csafe-haven\u201d appeal. <\/p>\n\n<p>We welcome the start to Q1\/13 with the S&P\/TSX Composite Index* at 12,800, up 3.3 per cent. South of the border, the U.S. S&P 500** continues to outpace the last several years\u2019 performance on its strengthening economic factors\u20149.2 per cent higher at 1,563.<\/p>\n\n<p>The Bank of Canada left the overnight interest rate unchanged on March 6, 2013. Longer-term bond prices fell slightly as interest rates rose. The yield on the 10-year Canada benchmark for bonds is 1.95 per cent, while the yield on the U.S. 10-year benchmark is now 2.03 per cent.<\/p>\n\n<p>The Canadian dollar has weakened against the U.S. dollar, closing below parity at $0.9794 per USD. Renewed demand for U.S. equities has been positive for the greenback.<\/p>\n\n<p>In the energy sector, crude oil climbed to U.S. $93.03\/bbl (1.49%). Gold bullion fell $82 (-4.79%) and is now trading at U.S. $1,590.<\/p>\n\n<p>*Returns based simply on price appreciation (dividends are excluded). <br>\n**Foreign equity indices based in USD.<\/p>\n\n<p><em>Data as of March 14, 2013. Source: <a href=\"https:\/\/wdsinvest.com\/fr\/common\/images\/quarterly\/0313\/03082013-TDWeeklyInsights.pdf\/\" target=\"_blank\">TD Weekly Insights<\/a> as of March 15, 2013.<\/em><\/p>\n\t\t<\/div>\n\t<\/div>\n<\/div><\/div><\/div><div class=\"wpb_column vc_column_container vc_col-sm-3\"><div class=\"vc_column-inner\"><div class=\"wpb_wrapper\"><\/div><\/div><\/div><\/div><div class=\"vc_row wpb_row vc_inner vc_row-fluid\"><div class=\"wpb_column vc_column_container vc_col-sm-9\"><div class=\"vc_column-inner\"><div class=\"wpb_wrapper\">\n\t<div class=\"wpb_text_column wpb_content_element vc_custom_1485208698906\" >\n\t\t<div class=\"wpb_wrapper\">\n\t\t\t<blockquote><p>\nWe believe Treasuries have gone from offering &#8220;risk-free returns&#8221; to now effectively becoming &#8220;return-free risk.\n<\/p><\/blockquote>\n<p style=\"padding-left: 24px;\"><em> &#8211; The Core Conundrum<\/em>, Section 2 Coping with New Market Realities<br \/>\nGuggenheim Partners, Portfolio Strategy Research, February 2013<\/p>\n\n\t\t<\/div>\n\t<\/div>\n<\/div><\/div><\/div><div class=\"wpb_column vc_column_container vc_col-sm-3\"><div class=\"vc_column-inner\"><div class=\"wpb_wrapper\"><\/div><\/div><\/div><\/div><div class=\"vc_separator wpb_content_element vc_separator_align_center vc_sep_width_100 vc_sep_pos_align_center vc_separator_no_text vc_sep_color_grey vc_custom_1452628437101 wpb_content_element  vc_custom_1452628437101 wpb_content_element\" ><span class=\"vc_sep_holder vc_sep_holder_l\"><span class=\"vc_sep_line\"><\/span><\/span><span class=\"vc_sep_holder vc_sep_holder_r\"><span class=\"vc_sep_line\"><\/span><\/span>\n<\/div><div class=\"vc_row wpb_row vc_inner vc_row-fluid\"><div class=\"wpb_column vc_column_container vc_col-sm-9\"><div class=\"vc_column-inner\"><div class=\"wpb_wrapper\">\n\t<div class=\"wpb_raw_code wpb_raw_html wpb_content_element\" >\n\t\t<div class=\"wpb_wrapper\">\n\t\t\t<p id=\"qe-aa-6\"><span class=\"h3-special\">ASK & ANSWER<\/span><br\/>\n<span class=\"h3-special-subheader\">When should you take a capital loss on a bond?<\/span><\/p>\n\n<p><strong>ASK<\/strong><br>\n<em>I bought a $10,000 face-value bond at a premium, paying 105 per cent or $10,500. The coupon interest rate is 5 per cent. My all-in cost was $10,625, including the accrued interest paid. When the bond matured, I received the face value of $10,000. Can I claim the $625 as a capital loss for income tax purposes?<\/em><\/p>\n\n<p><strong>ANSWER<\/strong><br>\nThe <em>coupon interest rate<\/em> of 5 per cent means you receive $500 of interest income each year, whether you buy the bond at face value, a premium, or a discount. The $125 accrued interest that you paid on the purchase is deducted from the first $250-interest installment you get.<\/p>\n\n<p>Bonds trade at a <strong>premium<\/strong> when prevailing interest rates are lower than the coupon interest rate. A premium bond will continuously decrease in price until it reaches face value at maturity. This is the reason a bond purchased at a premium pays a lower yield than its stated coupon rate.<\/p>\n\n<p>In \u201ctax-speak\u201d, a <em>capital loss<\/em> is the difference between what you receive for the bond and the adjusted cost base (\u201cACB\u201d) of the bond you purchased. So, that $500 premium amount that you paid, over-and-above the face value of the bond, will be a capital loss when the bond matured.<\/p>\n\n<p>Dispositions and redemptions of bonds appear on the TRADING SUMMARY \u2013 2012 T5008 \/ RL18 issued with your annual T5 Statement of Investment Income. Be sure to complete <a href=\"http:\/\/www.cra-arc.gc.ca\/tx\/ndvdls\/tpcs\/ncm-tx\/rtrn\/cmpltng\/rprtng-ncm\/lns101-170\/127\/cmpltng\/bnds\/menu-eng.html\" target=\"_blank\">Schedule 3<\/a> and attach it to your tax return in order to report capital gains or capital losses on the disposition of bonds and other similar properties.<\/p>\n\t\t<\/div>\n\t<\/div>\n<\/div><\/div><\/div><div class=\"wpb_column vc_column_container vc_col-sm-3\"><div class=\"vc_column-inner\"><div class=\"wpb_wrapper\"><\/div><\/div><\/div><\/div><div class=\"vc_separator wpb_content_element vc_separator_align_center vc_sep_width_100 vc_sep_pos_align_center vc_separator_no_text vc_sep_color_grey vc_custom_1452628463369 wpb_content_element  vc_custom_1452628463369 wpb_content_element\" ><span class=\"vc_sep_holder vc_sep_holder_l\"><span class=\"vc_sep_line\"><\/span><\/span><span class=\"vc_sep_holder vc_sep_holder_r\"><span class=\"vc_sep_line\"><\/span><\/span>\n<\/div><div class=\"vc_row wpb_row vc_inner vc_row-fluid\"><div class=\"wpb_column vc_column_container vc_col-sm-9\"><div class=\"vc_column-inner\"><div class=\"wpb_wrapper\">\n\t<div class=\"wpb_raw_code wpb_raw_html wpb_content_element\" >\n\t\t<div class=\"wpb_wrapper\">\n\t\t\t<p id=\"qe-reads-6\"><span class=\"h3-special\">WDS READS<\/span><br\/>\n<span class=\"h3-special-subheader\">ENDGAME: The End of the Debt Supercycle and How It Changes Everything<\/span><p>\n\n<p><strong>John Mauldin and Jonathan Tepper, John Wiley & Sons, Inc., March 2011<\/strong><\/p>\n\n<p>The last 60 years have created a global debt supercycle, which caused a huge bubble in asset prices around the world. When the last one finally popped\u2014as bubbles always do\u2014it marked the beginning of what\u2019s now being called <em>The Great Recession<\/em>. During the last five years, massive amounts of private household debt shifted to the government. That debt has not melted away, and neither have the \u201cfingers of instability\u201d that remain in its wake. Now it\u2019s the governments of the world that have debt problems and are fast approaching the limits of their ability to borrow money. <\/p>\n\n<p><em>Endgame<\/em> lays out country-by-country scenarios of what's required to bring debt back to manageable levels. The book helps the average reader, like me, grasp the hard reality of the choices we\u2019re facing. The entire developed world cannot simply \u201cgrow its way out of debt\u201d any longer. The rules of economics will not work that way. <\/p>\n\n<p>If you enjoy the book as much as I did, you may want to subscribe to author John Mauldin\u2019s weekly e-newsletter, <em>Thoughts From The Frontlines<\/em>. I\u2019ve become a regular reader, and recommend it.<\/p>\n\n<p>\"We all know we have seen the end of an era, and now we have courtside seats to watch the Endgame unfold. We are watching the end of Act I: The Debt Supercycle. Now we will get to see how Act II: The Endgame plays out.\"<br>\n<em>\u2014From Chapter 1, page 4<\/em><\/p>\n\n<p>Greece isn't the only country drowning in debt. The debt supercycle\u2014a situation in which easily managed, decades-long growth of debt results in a massive sovereign debt and credit crisis\u2014is affecting developed countries around the world, including the United States. For these countries, there are only two options, and neither is good. Either restructure the debt, or reduce it through austerity measures.<\/p>\n\n<p><em>Endgame<\/em> details the debt supercycle and the sovereign debt crisis and shows us that, while there may be no good alternatives, the worst choice is to ignore the deleveraging that resulted from the debt crisis.<\/p>\n\n<p><strong>Praise for Endgame<\/strong><\/p>\n\n<p>\"This is an extremely powerful, sobering, well written and highly accessible book. It will demonstrate to you why there are no painless solutions to the mounting debt problems around the world\u2014something that too many people are yet to realize. It will take you on a well-documented journey thought the debt super cycle, making stops around the world and at critical junctures. And it is a must-read for anyone wishing to understand the global debt dynamics and ways to protect against its bad consequences.\"<br>\n\u2013 Mohamed A. El-Erian, CEO, PIMCO; author of <em>When Markets Collide<\/em><\/p>\n\n<p><strong>Book Review:<\/strong> Endgame - The End of the Debt Supercycle and How It Changes Everything \u2013 <a href=\"https:\/\/wdsinvest.com\/fr\/common\/images\/quarterly\/0313\/SeekingAlpha-bookreview-endgame.pdf\/\" target=\"_blank\">Seeking Alpha<\/a><\/p>\n\t\t<\/div>\n\t<\/div>\n<\/div><\/div><\/div><div class=\"wpb_column vc_column_container vc_col-sm-3\"><div class=\"vc_column-inner\"><div class=\"wpb_wrapper\">\n\t<div  class=\"wpb_single_image wpb_content_element vc_align_center wpb_content_element\">\n\t\t\n\t\t<figure class=\"wpb_wrapper vc_figure\">\n\t\t\t<div class=\"vc_single_image-wrapper   vc_box_border_grey\"><img loading=\"lazy\" decoding=\"async\" width=\"150\" height=\"227\" src=\"https:\/\/wdsinvest.com\/wp-content\/uploads\/2016\/01\/ENDGAME-book-cover.jpg\" class=\"vc_single_image-img attachment-medium\" alt=\"\" title=\"ENDGAME-book-cover\" srcset=\"https:\/\/wdsinvest.com\/wp-content\/uploads\/2016\/01\/ENDGAME-book-cover.jpg 150w, https:\/\/wdsinvest.com\/wp-content\/uploads\/2016\/01\/ENDGAME-book-cover-96x146.jpg 96w, https:\/\/wdsinvest.com\/wp-content\/uploads\/2016\/01\/ENDGAME-book-cover-33x50.jpg 33w, https:\/\/wdsinvest.com\/wp-content\/uploads\/2016\/01\/ENDGAME-book-cover-50x75.jpg 50w\" sizes=\"auto, (max-width: 150px) 100vw, 150px\" \/><\/div>\n\t\t<\/figure>\n\t<\/div>\n<\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div><div data-vc-full-width=\"true\" data-vc-full-width-init=\"false\" class=\"vc_row wpb_row vc_row-fluid vc_custom_1452628723979 vc_row-has-fill\"><div class=\"wpb_column vc_column_container vc_col-sm-9\"><div class=\"vc_column-inner\"><div class=\"wpb_wrapper\">\n\t<div class=\"wpb_raw_code wpb_raw_html wpb_content_element\" >\n\t\t<div class=\"wpb_wrapper\">\n\t\t\t<h4>Gather up slips and track that list!<\/h4>\n\n<p>The very first step for making sure you file a complete income tax return is to gather up all of your tax slips (\"T-slips\"). Your investment income\u2014interest, dividends, trust distributions, etc.\u2014are reported on various (and often multiple) T-slips, issued at different times. The T5 slips are out by February 28th. But T3s aren't due until March 31st, so they're responsible for most taxpayer slip-ups.<\/p>\n\n<p>To eliminate the guesswork, TD Waterhouse includes a PENDING TRUST UNIT SUMMARY list each time its computers issue a batch of T3s. This page gives a listing of trust-unit holdings that haven't been reported in time to be included on that particular run date. It's a handy tool you can take to your tax preparer so you both can keep track of what slips are still outstanding.<\/p>\n\n<p>Canada Revenue Agency aggressively reassesses for missing T-slips, so don't become a casualty of CRA tax penalties if you can possibly help it. If you're uncertain about what you've got and what you need, don't hesitate to ask your investment adviser.<\/p>\n\t\t<\/div>\n\t<\/div>\n<\/div><\/div><\/div><div class=\"wpb_column vc_column_container vc_col-sm-3\"><div class=\"vc_column-inner\"><div class=\"wpb_wrapper\"><\/div><\/div><\/div><\/div><div class=\"vc_row-full-width vc_clearfix\"><\/div><div class=\"vc_row wpb_row vc_row-fluid\"><div class=\"wpb_column vc_column_container vc_col-sm-12\"><div class=\"vc_column-inner\"><div class=\"wpb_wrapper\"><div class=\"vc_row wpb_row vc_inner vc_row-fluid\"><div class=\"wpb_column vc_column_container vc_col-sm-9\"><div class=\"vc_column-inner\"><div class=\"wpb_wrapper\">\n\t<div class=\"wpb_raw_code wpb_raw_html wpb_content_element\" >\n\t\t<div class=\"wpb_wrapper\">\n\t\t\t<p id=\"qe-dyk-6\">You've heard the terms \"bull\" and \"bear\" bandied about in the investing world. You probably know they're associated with rising or falling markets. But just how these words worked their way into the language to mean something other than big scary animals with hooves and claws is an interesting story.<p>\n\n<p>The use of \"bull\" and \"bear\" to describe features of the stock market actually originated with two related families in the U.K.: the Bulteels and the Barings. Edward Baring was a British banker who married Georgiana Bulteel of Fleet, joining the \"Bars\" with the \"Buls\". The Barings' bank had a crisis during the Panic of 1890, which destroyed their family wealth.<\/p>\n\n<p>The animal imagery comes from a pair of large stone gate piers. They are surmounted by a large bear and sitting bull holding shields, which stood at the boundary between their two estates.<\/p>\n\t\t<\/div>\n\t<\/div>\n<\/div><\/div><\/div><div class=\"wpb_column vc_column_container vc_col-sm-3\"><div class=\"vc_column-inner\"><div class=\"wpb_wrapper\">\n\t<div  class=\"wpb_single_image wpb_content_element vc_align_center wpb_content_element\">\n\t\t\n\t\t<figure class=\"wpb_wrapper vc_figure\">\n\t\t\t<div class=\"vc_single_image-wrapper   vc_box_border_grey\"><img loading=\"lazy\" decoding=\"async\" width=\"140\" height=\"198\" src=\"https:\/\/wdsinvest.com\/wp-content\/uploads\/2016\/01\/didyouknow.jpg\" class=\"vc_single_image-img attachment-medium\" alt=\"\" title=\"didyouknow\" srcset=\"https:\/\/wdsinvest.com\/wp-content\/uploads\/2016\/01\/didyouknow.jpg 140w, https:\/\/wdsinvest.com\/wp-content\/uploads\/2016\/01\/didyouknow-103x146.jpg 103w, https:\/\/wdsinvest.com\/wp-content\/uploads\/2016\/01\/didyouknow-35x50.jpg 35w, https:\/\/wdsinvest.com\/wp-content\/uploads\/2016\/01\/didyouknow-53x75.jpg 53w\" sizes=\"auto, (max-width: 140px) 100vw, 140px\" \/><\/div>\n\t\t<\/figure>\n\t<\/div>\n<\/div><\/div><\/div><\/div><div class=\"vc_separator wpb_content_element vc_separator_align_center vc_sep_width_100 vc_sep_pos_align_center vc_separator_no_text vc_sep_color_grey vc_custom_1452628572787 wpb_content_element  vc_custom_1452628572787 wpb_content_element\" ><span class=\"vc_sep_holder vc_sep_holder_l\"><span class=\"vc_sep_line\"><\/span><\/span><span class=\"vc_sep_holder vc_sep_holder_r\"><span class=\"vc_sep_line\"><\/span><\/span>\n<\/div><div class=\"vc_row wpb_row vc_inner vc_row-fluid\"><div class=\"wpb_column vc_column_container vc_col-sm-9\"><div class=\"vc_column-inner\"><div class=\"wpb_wrapper\">\n\t<div class=\"wpb_raw_code wpb_raw_html wpb_content_element\" >\n\t\t<div class=\"wpb_wrapper\">\n\t\t\t<h3>FRIENDS, FAMILY MEMBERS AND WDS<\/h3>\n\n<p>Before suggesting that a friend call us, we're often asked, \"Are you accepting new clients?\" Thank you for that courtesy. We're firm believers that good people always know other good people, and so, yes! We welcome your introductions to people like you.<\/p>\n\n<p>When you spot a need for advice that we might help fill, have your friend or family member <a href=\"http:\/\/wdsinvest.com\/fr\/contact\/\">come talk to us<\/a>. We want to help.<\/p>\n\n<p>We thank you for your support and appreciate all your referrals. Your confidence means everything to us, and we'll work hard to justify it.<\/p>\n\n<p>PLEASE NOTE: The information presented in this e-newsletter is of a general nature only and does not give advice on any particular matter. It is not intended to replace personal, professional advice based on individual circumstances.<\/p>\n\t\t<\/div>\n\t<\/div>\n<\/div><\/div><\/div><div class=\"wpb_column vc_column_container vc_col-sm-3\"><div class=\"vc_column-inner\"><div class=\"wpb_wrapper\"><\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div><div class=\"vc_row wpb_row vc_row-fluid\"><div class=\"wpb_column vc_column_container vc_col-sm-12\"><div class=\"vc_column-inner\"><div class=\"wpb_wrapper\"><div class=\"vc_empty_space\"   style=\"height: 40px\"><span class=\"vc_empty_space_inner\"><\/span><\/div><\/div><\/div><\/div><\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"March 2013 In this edition\u2026 Fixed Income: Should we worry about rising interest rates? RESULTS at a glance Ask & Answer \u2013 When should you take a capital loss on a bond? WDS Reads \u2013 ENDGAME by John Mauldin and Jonathan Tepper Did You Know? The origin of \"bull\" and<span class=\"excerpt-hellip\"> [\u2026]<\/span>","protected":false},"author":5,"featured_media":0,"parent":814,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"class_list":["post-892","page","type-page","status-publish","hentry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Fixed income: Should we worry about rising interest rates? - Watson Di Primio Steel (WDS)<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/wdsinvest.com\/fr\/wds-resources\/quarterly-exchange\/fixed-income-should-we-worry\/\" \/>\n<meta property=\"og:locale\" content=\"fr_FR\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Fixed income: Should we worry about rising interest rates? 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