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Morningstar: How to trade interest rate speculation

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Have you been guessing when central banks will raise interest rates? Morningstar research has been looking at ways to trade the speculation.   

Gaston Ceron, Equity Analyst at Morningstar discusses CME Group (CME) and highlights their special fifth annual dividend. The firm specializes in futures and is trading a wide variety of products especially trading of interest-rate derivative products. 

Gaston Ceron believes that the key thing to look at while following a company is volume. High volume is generally good for the exchange and low volume is not so good. When it comes to interest-rate products, people are speculating about the path of interest rates which generally is good for the volume and volatility. 

Gaston Ceron highlights CME as a good dividend payer. CME’s regular quarterly dividend is now around 2.65 percent. Besides that, CME regularly considers an additional fifth dividend. Gaston Ceron believes that this can be a nice additional payout for stockholders.