Bond Legend Dan Fuss on Rising Rates

Having just celebrated his 80th birthday, Dan Fuss can claim a unique achievement – his tenure in the fixed income markets has spanned a full market cycle, from the great bear market that began in the early 1950s through the equally great bull market that commenced in 1981. Fuss said today’s environment most closely resembles what he confronted in the late 1950s, when long-term rates were 3% and beginning their march upwards.

“Interest rates will go up a little bit,” he said. “We are in the foothills of a secular rise in interest rates.”

Fuss is...