Like Those Low Rates? Shame If Something Happened to Them

(Bloomberg) --

Near record-low, and even negative, interest rates have captivated investors around the world. But are they here to stay? Chad Morganlander and Kevin Caron, portfolio managers at Washington Crossing Advisers, join the “What Goes Up” podcast to discuss how imbalances between China and other major economies have helped lead to a savings glut that’s depressed rates, and how the nation’s gradual shift to a more consumer-oriented economy could unwind this dynamic.

“The bottom line of it for us is that debt levels have soared as a result of this, and we want to be very careful with owning companies that have a lot of debt on their balance sheets,’’ says Caron. “We want to be prepared in having a portfolio that can respond to what we see as an eventual period of rising interest rates around the world.’’

To contact the editor responsible for this story: Topher Forhecz at tforhecz@bloomberg.net

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