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I recently took a position in EVBIX (Institutional Class of EVBAX) for just this reason: for a bond fund, EVBIX seems not to respond very adversely to rising interest rates. In fact, for some periods recently there has been a negative correlation between fund share price and intermediate bond prices. All I can figure out is that she has possibly bought up a lot of undervalued bonds which are rising in value despite the increase in rates, and also some of the portfolio is in bank loans and other non-interest rate sensitive issues. I am hoping that with a relatively clean slate and an acknowledgment of the likelhood that rates may rise she is positioning the fund so as not to be very sensitive to interest rates.
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Joe