Who could win and who could lose if the Fed hikes rates

Russ Koesterich, chief investment strategist at Blackrock, the money manager, says investors should expect "bigger drops and bigger swings'' in the market as people scramble to adjust their portfolios after six years of near-zero rates. ''This is going to be a change in the environment." Here's how the prospect of higher rates is shaping stocks, bonds, borrowing and saving:

People holding utility stocks have suffered losses this year. Utilities as a group have slumped 7.1 percent in 2015, the biggest loss among the 10 industry sectors that make up the Standard & Poor's 500 index. These stocks typically pay dividends that are high relative to their companies' share prices. They were in demand last year, when government bond yields fell, and investors wanted them for the level of income they were no longer able to get from bonds. Now, as yields on those ultra-safe bonds have edged higher, these stocks are less attractive. The yield on the 10-year Treasury note, which had dropped as low has 1.64 percent in January, has climbed to 2.06 percent. Dividend-rich stocks, which carry more risk than Treasurys, look less attractive. Other stocks that traditionally pay big dividends to investors, such as telecommunications companies, have also started to struggle. Telecoms have fallen 3 percent this month.

Source: telegram.com

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