After almost seven years, the beginning of the end of ultralow rates is here.
What's that you say? The Fed is going to raise rates?
Remember the so-called taper tantrum in 2013, when some traders dumped Treasuries to express their ire at the Federal Reserve for having the temerity to suggest that rates can't stay at zero forever? Today it's hard to imagine anyone left who doesn't understand a rate increase is coming, most likely sooner (2015) rather than later (2016). Still, there's a whole generation of traders who have never seen a rate increase, the last of which was a 25-basis-point bump in the fed funds rate way back on June 29, 2006.
Read Full Article »