The Risk of Reinvestment in Fixed Income

Many investors sold their fixed income exposure and rotated that money into short term instruments such as US Treasury bills or government money market fund. With interest rates likely to fall over the next 12 to 24 months, this quote unquote reinvestment risk is extremely high. If a T bill yield drops from its current level of call at five and a quarter percent, back down to 3%, or maybe even 2%, will that client still be able to meet their retirement goals? And what if it were to drop to zero? That's definitely the number one conversation we're having with other portfolio managers in all various capacities. There are plenty of folks out there that want to be opportunistic and are looking for the