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Investor Education
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+4.25% in 25 months
There have been three periods of tightening monetary policy in the past 20 years, during which short-term rates rose by an average of 3% most recently, by more than 4%.
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+1.75% in 12 months
3.00
+3.00% in 13 months
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1.00
0.00 1992
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The federal funds rate is a short-term rate objective of the Federal Reserve Board. The actual federal funds rate is the interest rate at which depository institutions lend balances at the Federal Reserve to other depository institutions overnight. The real rate changes daily, but is usually close to the target rate desired by the Federal Reserve.
If rates rise 1%
Expected price change -1% -3% -5% -7%
If rates rise 2%
Expected price change -2% -6% -10% -14%
If rates rise 4%
Expected price change -4% -12% -20% -28%
For more information on how Putnams fixed-income funds can fit into a diversified portfolio, talk to your financial advisor or log on to putnam.com.
Consider these risks before investing: Funds that invest in bonds are subject to certain risks including interest-rate risk, credit risk, and inflation risk. As interest rates rise, the prices of bonds fall. Long-term bonds are more exposed to interest-rate risk than short-term bonds. Unlike bonds, bond funds have ongoing fees and expenses. Investors should carefully consider the investment objectives, risks, charges, and expenses of a fund before investing. For a prospectus or a summary prospectus containing this and other information for any Putnam fund or product, call your financial representative or call Putnam at 1-800-225-1581. Please read the prospectus carefully before investing.
Putnam Retail Management
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