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3 Impacts of Rising Short Term Rates

The Federal Reserve hiked rates in March by 25bps to 1.5—1.75% marking the sixth uptick since December 2015. It’s set to increase them even more over the next two years, which could result in a rate rise of 3.5% by 2020. The upshot of rising short term rates could have a positive impact for hedge funds, but the main thing to focus on will be what happens to the cash; AlphaWeek takes a look at the possible impact of rising rates. Strategies with large cash positions will do better than those without Strategies with large cash positions will grow their market share of...