The fourth quarter saw the Federal Reserve raise interest rates for the first time since 2006, signaling an end to the zero interest rate environment of the last several years. At the December FOMC meeting, Chairwoman Janet Yellen increased the federal funds rate by 25 basis points, moving the target range to 0.25% – 0.50%. Despite investor anxiety regarding the liftoff of interest rate hikes, the market’s reaction was muted as the impact of the initial hike was largely priced in.

Fixed Income Newsletter Q4_2015