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"Many closed-end funds have high yields and are more susceptible to rising interest rate environments and worsening credit conditions," he said.
Goldman did not especially gain any advantage from the current low interest rates, he said, because it used financial hedging to thrive in both low and high interest rate environments.
The governor of the Bank of England told the last day of the Davos meeting of the World Economic Forum that he could receive daily risk positions of the banks to monitor any stresses in the system as he admitted persistently low interest rate environments could cause investors to take risks.
For many people, "this has to be one of the most frustrating interest rate environments, because the yields are so low that you have to be careful not to just reach out and take on more risk just to get a better yield," said Edward Yardeni, an investment strategist.
You have different interest rate environments.
Because then you'll get a feel for how it does in different interest rate environments.
Similar(53)
"What benefits us is definitely a low interest rate environment.
"We are in a rising global interest rate environment," said Geoffrey Dennis, Latin America equity strategist for Salomon Smith Barney.
"Stock markets always find it hard to adjust to a higher interest rate environment," he added.
One of the culprits for the latter was "the lower for longer interest rate environment".
"That is a challenging hurdle in today's low interest rate environment.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com