Updates, Tips, & Finance News

Hi there,

A lot of investors are focused on interest rates, as rates have risen over the course of the last week.

A big focal point is what will happen with the Federal Reserve meeting next week, which typically has a pretty big impact on interest rates.

As you may recall from our previous updates, many businesses that borrow money from banks typically have a floating interest rate. This means that if interest rates rise, it may start to put pressure on their profitability.

We don’t see this as an issue yet, but it’s something that we are definitely watching for the future.

Hope you have a great week ahead!


Rising U.S. interest rate data was referenced from the 10 Year U.S. Treasury yield from Bloomberg Terminal for the trading week of 9/17/18 - 9/21/18. The statement of business loans from banks commonly having floating rate characteristics was a statement of opinion and matter-of-fact. An environment of rising interest rates can increase the debt service obligation of these businesses who have floating rate bank loans. A higher debt service obligation may reduce profitability, all else remaining equal. Round Investments LLC, dba Round, is an SEC registered investment advisor. Securities offered through Apex Clearing Corporation, Member FINRA, SIPC. The information provided should not be relied upon as investment advice or recommendations, does not constitute a solicitation to buy or sell securities and should not be considered legal, investment or tax advice as it does not take into account the specific objectives, financial situation or particular needs of any specific person. Diversification does not ensure a profit or protect against a loss in a declining market. There is no guarantee that any particular asset allocation or mix of funds will meet your investment objectives or provide you with a given level of income. Forecasts or projections of investment outcomes in investment plans are estimates only, based upon numerous assumptions about future capital markets returns and economic factors. As estimates, they are imprecise and hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. Investing entails risk including the possible loss of principal and there is no assurance that the investment will provide positive performance over any period of time. To view Round's Brochure, Terms of Use, Privacy Policy, and Disclosures go to www.investround.com