Interest rate cycles shape almost every corner of a fixed-income portfolio — from the coupon income investors collect to the price swings they feel when rates move. As monetary policy adjusts through 2026, investors are asking the same question they ask at every turning point: what should I actually do differently?
Start with duration. Duration measures how sensitive a bond's price is to interest rate changes. In a period of shifting policy, reviewing the average duration across a fixed-income allocation is usually the highest-value first step.
Don't abandon diversification for a forecast. No one — including us — can reliably call the exact path of rates. A more durable approach blends maturities, issuers and credit quality.
Talk to your advisor before rebalancing. Every investor's time horizon, liquidity needs and risk tolerance are different. A conversation with your STL advisor is the right next step before acting.
