{"id":311,"date":"2018-10-18T17:52:00","date_gmt":"2018-10-18T17:52:00","guid":{"rendered":"https:\/\/www.simplywise.com\/blog-2023\/?p=311"},"modified":"2023-06-22T19:57:43","modified_gmt":"2023-06-22T19:57:43","slug":"bond-losses-rising-interest-rates","status":"publish","type":"post","link":"https:\/\/www.simplywise.com\/blog\/bond-losses-rising-interest-rates\/","title":{"rendered":"Bond Losses From Rising Interest Rates: A History Lesson"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"311\" class=\"elementor elementor-311\">\n\t\t\t\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-1b23d45 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"1b23d45\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-2b3edb2\" data-id=\"2b3edb2\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-7ad76a3 elementor-widget elementor-widget-text-editor\" data-id=\"7ad76a3\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.13.3 - 28-05-2023 *\/\n.elementor-widget-text-editor.elementor-drop-cap-view-stacked .elementor-drop-cap{background-color:#69727d;color:#fff}.elementor-widget-text-editor.elementor-drop-cap-view-framed .elementor-drop-cap{color:#69727d;border:3px solid;background-color:transparent}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap{margin-top:8px}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap-letter{width:1em;height:1em}.elementor-widget-text-editor .elementor-drop-cap{float:left;text-align:center;line-height:1;font-size:50px}.elementor-widget-text-editor .elementor-drop-cap-letter{display:inline-block}<\/style>\t\t\t\t<p>For the last 18 months, the\u00a0<a href=\"https:\/\/fred.stlouisfed.org\/series\/FEDFUNDS\">Federal Reserve<\/a>\u00a0has been increasing interest rates. The last time this happened was over 10 years ago, which means that many people who began investing in the past decade have only experienced an economic environment of low or falling rates. The key question we\u2019ll try to answer is: what is likely to happen to the\u00a0<a href=\"https:\/\/www.simplywise.com\/blog\/investing-in-bonds-introduction\/\">bonds<\/a>\u00a0in your portfolio when interest rates rise?<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-9f218c2 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"9f218c2\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-c81e234\" data-id=\"c81e234\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-d054d3b elementor-widget elementor-widget-template\" data-id=\"d054d3b\" data-element_type=\"widget\" data-widget_type=\"template.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-template\">\n\t\t\t\t\t<div data-elementor-type=\"section\" data-elementor-id=\"196\" class=\"elementor elementor-196\">\n\t\t\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-339b45e0 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"339b45e0\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-3f771e94\" data-id=\"3f771e94\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-44435407 elementor-cta--skin-classic elementor-animated-content elementor-bg-transform elementor-bg-transform-zoom-in elementor-widget elementor-widget-call-to-action\" data-id=\"44435407\" data-element_type=\"widget\" data-widget_type=\"call-to-action.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<link rel=\"stylesheet\" href=\"https:\/\/www.simplywise.com\/blog\/wp-content\/uploads\/elementor\/css\/custom-pro-widget-call-to-action.min.css?ver=1764022918\">\t\t<a class=\"elementor-cta\" href=\"https:\/\/simplywise.app.link\/Iv0wVANrvfb\">\n\t\t\t\t\t\t\t<div class=\"elementor-cta__content\">\n\t\t\t\t\t\t\t\t\t<div class=\"elementor-content-item elementor-cta__content-item elementor-icon-wrapper elementor-cta__icon elementor-view-default\">\n\t\t\t\t\t\t<div class=\"elementor-icon\">\n\t\t\t\t\t\t\t<i aria-hidden=\"true\" class=\"far fa-lightbulb\"><\/i>\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t<h2 class=\"elementor-cta__title elementor-cta__content-item elementor-content-item\">DID YOU KNOW?<\/h2>\n\t\t\t\t\t\t\t\t\t<div class=\"elementor-cta__description elementor-cta__content-item elementor-content-item\">\n\t\t\t\t\t\tRetirement is 99% easier when your paperwork is organized. \n\nJoin 250,000+ Americans securely storing their important receipts, bills &amp; documents with the SimplyWise app.\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t<div class=\"elementor-cta__button-wrapper elementor-cta__content-item elementor-content-item \">\n\t\t\t\t\t<span class=\"elementor-cta__button elementor-button elementor-size-md\">\n\t\t\t\t\t\tGet the App\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/a>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-79e5e57 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"79e5e57\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-c354cb4\" data-id=\"c354cb4\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-c54fad8 elementor-widget elementor-widget-text-editor\" data-id=\"c54fad8\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<h2><b>Who Is Affected by Bond Price Changes?<\/b><\/h2><p>Investors typically own a combination of bonds and some stocks; the typical mix is a 60\/40 stock\/bond portfolio. Investors who are closer to retirement tend to take less risk in their portfolios, meaning they tend to be more weighted towards bonds. They are more exposed to changes in bond prices. For younger investors, any volatility in the price of bonds they own will typically be lower than the volatility they are experiencing in the stock market.<\/p><h2><b>How Interest Rates and Bond Prices Are Linked<\/b><\/h2><p>To understand the effect of interest rates on bond prices, let\u2019s assume that you buy a US government bond right when it is issued by the government. By doing so, you are loaning the US government money, and in return they will pay you an interest rate and promise to return your principal in 10 years. How much interest you are paid depends on the interest rate set on the bond when you purchase it. There isn\u2019t too much complexity here. This experience of buying a bond and holding it until its term ends is fairly similar to the experience of buying a\u00a0<a href=\"https:\/\/www.simplywise.com\/blog\/guide-to-a-cd-certificate-of-deposit\/\">certificate of deposit (CD)<\/a>. You put some money in, and after a certain term you get back your original money plus interest payments along the way.<\/p><p>Where things get more complicated is if you try to sell the bond before the term is up. Let\u2019s say you buy a 10-year bond from the US government that pays a 3% interest payment per year. Halfway through the term you decide to sell the bond. The amount of money you will get for the bond will depend on what interest rate someone could get paid for the remaining 5 years. If interest rates in the economy have gone up and you can now buy a new 5-year bond that pays a 7% interest rate, then it may be harder for you to sell your 10-year bond without incurring a loss. In other words, if you had to value your bond daily according to what you could sell it for, you would have seen its price decline.<\/p><p>The reason this matters is because a lot of investors get exposure to bonds through bond funds and ETFs that have to value their bond portfolios every day, thereby exposing their investors to gains and losses in the market value of the bond.<\/p><h2><b>Historical Losses from Holding Bonds<\/b><\/h2><p>Let\u2019s explore what these losses have looked like historically. We\u2019ve gone back in time and generated total return series for a bond fund that holds US government bonds of a constant maturity of 1 year, 3 years, 5 years, and 10 years.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-68b06f5 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"68b06f5\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-824452d\" data-id=\"824452d\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-55f4c8c elementor-widget elementor-widget-image\" data-id=\"55f4c8c\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.13.3 - 28-05-2023 *\/\n.elementor-widget-image{text-align:center}.elementor-widget-image a{display:inline-block}.elementor-widget-image a img[src$=\".svg\"]{width:48px}.elementor-widget-image img{vertical-align:middle;display:inline-block}<\/style>\t\t\t\t\t\t\t\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"640\" height=\"380\" src=\"https:\/\/www.simplywise.com\/blog\/wp-content\/uploads\/2018\/10\/US_Government_Bond_Total_Return-2.jpeg\" class=\"attachment-large size-large wp-image-314\" alt=\"\" srcset=\"https:\/\/www.simplywise.com\/blog\/wp-content\/uploads\/2018\/10\/US_Government_Bond_Total_Return-2.jpeg 875w, https:\/\/www.simplywise.com\/blog\/wp-content\/uploads\/2018\/10\/US_Government_Bond_Total_Return-2-300x178.jpeg 300w, https:\/\/www.simplywise.com\/blog\/wp-content\/uploads\/2018\/10\/US_Government_Bond_Total_Return-2-768x456.jpeg 768w\" sizes=\"auto, (max-width: 640px) 100vw, 640px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-2a50dc6 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"2a50dc6\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-a7cd66f\" data-id=\"a7cd66f\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-7f67221 elementor-widget elementor-widget-text-editor\" data-id=\"7f67221\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>The graph above shows the value of $100 invested in bonds of different maturities. The first thing that stands out is that the 10-year bond is the most volatile. This makes some sense. Imagine you owned two bonds: one that had 9 years left to its term and one that had 3 years left. If interest rates increase, then both bonds will become less valuable (since you\u2019d be able to buy new bonds for the same term with a higher interest rate). Which bond would you expect to become less valuable? It turns out the 10-year bond will drop further in price, because it is the one with more interest payments left that are now worth less.<\/p><p>The volatility in the return stream comes entirely from the market value of the bond changing day to day. You\u2019d expect your income from the bond to be relatively steady as the bonds continue pay interest to you. In the graph below, we\u2019ve broken out how much of the total return of the 10-year bond comes from interest payments rather than from the fluctuations in the market value of the bond.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-69947e8 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"69947e8\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-0e4bb86\" data-id=\"0e4bb86\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-6af0a08 elementor-widget elementor-widget-image\" data-id=\"6af0a08\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"640\" height=\"380\" src=\"https:\/\/www.simplywise.com\/blog\/wp-content\/uploads\/2018\/10\/US_Government_Bond_Breakdown-2.jpeg\" class=\"attachment-large size-large wp-image-315\" alt=\"\" srcset=\"https:\/\/www.simplywise.com\/blog\/wp-content\/uploads\/2018\/10\/US_Government_Bond_Breakdown-2.jpeg 875w, https:\/\/www.simplywise.com\/blog\/wp-content\/uploads\/2018\/10\/US_Government_Bond_Breakdown-2-300x178.jpeg 300w, https:\/\/www.simplywise.com\/blog\/wp-content\/uploads\/2018\/10\/US_Government_Bond_Breakdown-2-768x456.jpeg 768w\" sizes=\"auto, (max-width: 640px) 100vw, 640px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-5a3b227 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"5a3b227\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-d84c243\" data-id=\"d84c243\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-53b3f82 elementor-widget elementor-widget-text-editor\" data-id=\"53b3f82\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>The next question you might have is: how big have these fluctuations been historically, and are they worth worrying about?<\/p><p>The graph below shows the drawdowns you would have experienced by owning a bond fund that maintained exposure to 10-year bonds over the past 60 years. A drawdown is how much you would have lost at any point in time from the peak value of your investment. Let\u2019s say that you own shares in a bond fund that is worth $100. It then increases in value to $110, before dropping to $90. In this case your drawdown would be ($90 \u2013 $110) \/ $110, or -18%, meaning you would have lost 18% of your money from its peak value.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-d3157d3 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"d3157d3\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-b6fbc6f\" data-id=\"b6fbc6f\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-a6e816f elementor-widget elementor-widget-image\" data-id=\"a6e816f\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"640\" height=\"380\" src=\"https:\/\/www.simplywise.com\/blog\/wp-content\/uploads\/2023\/06\/US_Government_Bond_Drawdown-2.jpeg\" class=\"attachment-large size-large wp-image-316\" alt=\"\" srcset=\"https:\/\/www.simplywise.com\/blog\/wp-content\/uploads\/2023\/06\/US_Government_Bond_Drawdown-2.jpeg 875w, https:\/\/www.simplywise.com\/blog\/wp-content\/uploads\/2023\/06\/US_Government_Bond_Drawdown-2-300x178.jpeg 300w, https:\/\/www.simplywise.com\/blog\/wp-content\/uploads\/2023\/06\/US_Government_Bond_Drawdown-2-768x456.jpeg 768w\" sizes=\"auto, (max-width: 640px) 100vw, 640px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-28a58da elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"28a58da\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-13a1bf6\" data-id=\"13a1bf6\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-76089c6 elementor-widget elementor-widget-text-editor\" data-id=\"76089c6\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>The graph shows that over the past 60 years you would have experienced a maximum drawdown of about -15%. There are 5 cases where an investor would have experienced a 10 percent loss in the value of their bond fund. For many investors who are young who have a large allocation to equities, these drawdowns are relatively insignificant when compared to the\u00a0<a href=\"https:\/\/www.simplywise.com\/blog\/the-1929-stock-market-crash-an-ultimate-guide\/\">volatility of the stock market<\/a>. However, for investors who see investing in bond funds as a relatively safe way to store and grow money, the fact that they can potentially lose more than 10% of their money might come as a shock.<\/p><p>In the next part of our series, we\u2019ll look into novel ways to\u00a0<a href=\"https:\/\/www.simplywise.com\/blog\/fixed-index-annuity-everything-you-need-to-know\/\">generate higher yields<\/a>\u00a0from bonds during periods of poor bond performance.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-29049ba elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"29049ba\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-780e28f\" data-id=\"780e28f\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-c6b6d78 elementor-widget elementor-widget-template\" data-id=\"c6b6d78\" data-element_type=\"widget\" data-widget_type=\"template.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-template\">\n\t\t\t\t\t<div data-elementor-type=\"section\" data-elementor-id=\"196\" class=\"elementor elementor-196\">\n\t\t\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-339b45e0 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"339b45e0\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-3f771e94\" data-id=\"3f771e94\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-44435407 elementor-cta--skin-classic elementor-animated-content elementor-bg-transform elementor-bg-transform-zoom-in elementor-widget elementor-widget-call-to-action\" data-id=\"44435407\" data-element_type=\"widget\" data-widget_type=\"call-to-action.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<a class=\"elementor-cta\" href=\"https:\/\/simplywise.app.link\/Iv0wVANrvfb\">\n\t\t\t\t\t\t\t<div class=\"elementor-cta__content\">\n\t\t\t\t\t\t\t\t\t<div class=\"elementor-content-item elementor-cta__content-item elementor-icon-wrapper elementor-cta__icon elementor-view-default\">\n\t\t\t\t\t\t<div class=\"elementor-icon\">\n\t\t\t\t\t\t\t<i aria-hidden=\"true\" class=\"far fa-lightbulb\"><\/i>\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t<h2 class=\"elementor-cta__title elementor-cta__content-item elementor-content-item\">DID YOU KNOW?<\/h2>\n\t\t\t\t\t\t\t\t\t<div class=\"elementor-cta__description elementor-cta__content-item elementor-content-item\">\n\t\t\t\t\t\tRetirement is 99% easier when your paperwork is organized. \n\nJoin 250,000+ Americans securely storing their important receipts, bills &amp; documents with the SimplyWise app.\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t<div class=\"elementor-cta__button-wrapper elementor-cta__content-item elementor-content-item \">\n\t\t\t\t\t<span class=\"elementor-cta__button elementor-button elementor-size-md\">\n\t\t\t\t\t\tGet the App\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/a>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>For the last 18 months, the&nbsp;Federal Reserve&nbsp;has been increasing interest rates. The last time this happened was over 10 years ago, which means that many people who began investing in the past decade have only experienced an economic environment of low or falling rates. The key question we\u2019ll try to answer is: what is likely [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":312,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-311","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.2 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Bond Losses From Rising Interest Rates: A History Lesson - SimplyWise Cost Estimator<\/title>\n<meta name=\"description\" content=\"Bonds are an important part of many investors&#039; portfolios, so what happens when interest rates change? We break it all down...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.simplywise.com\/blog\/bond-losses-rising-interest-rates\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Bond Losses From Rising Interest Rates: A History Lesson - SimplyWise Cost Estimator\" \/>\n<meta property=\"og:description\" content=\"Bonds are an important part of many investors&#039; portfolios, so what happens when interest rates change? 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