BofAML: These Asset Classes Are Most at Risk When Interest Rates Rise

As we enter the second half of the year, more and more investors are talking about when the Federal Reserve will first increase its benchmark interest rate. A number of FOMC members have continued to speak out on a liftoff sometime this year, so it's no wonder that investors and analysts are thinking about which asset classes are the most exposed to the loss of zero interest rate policies, or "Zirp."

In a note entitled "from feast to famine," Bank of America Merrill Lynch's Chief Investment Strategist Michael Hartnett and his team outline which investments they think are the most vulnerable to rising interest rates.