Nat Kellogg, CFA
President
Despite the recent increase in long-term interest rates, the low rate environment is now more than four years old and continues to create challenges for investors. While interest rates are notoriously volatile the current low rate environment and negative real yields on risk free securities is unprecedented in its duration. Given the Federal Reserve’s clear indication that it will not raise interest rates until there is a substantial drop in unemployment or increase in inflation, it appears the current low rate environment is unlikely to change in the near future. While this creates challenges for all institutional investors, it creates a unique set of challenges for non-profit health care organizations (“HCOs”).
The opinions expressed herein are those of Marquette Associates, Inc. (“Marquette”), and are subject to change without notice. This material is not financial advice or an offer to purchase or sell any product. Marquette reserves the right to modify its current investment strategies and techniques based on changing market dynamics or client needs.
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