2-8-18 5:02 PM EST | Email Article

Shares of power-plant operators fell, but not by as much as the broad market, as a wave of risk aversion sent investors into sectors perceived as defensive. Still, the ongoing rally in Treasury yields is likely to keep a lid on any gains for utilities, which have become known as "bond proxies." One investment manager said the utilities sector was particularly sensitive to rising interest rates because of its indebtedness. "I think utilities are probably one area where they've taken on a lot of debt and when you take on debt and you have rising rates -- that's kind of a problem," said Jeffrey Pavlik, managing member of investment firm Pavlik Capital Management.

-Rob Curran, rob.curran@dowjones.com

(END) Dow Jones Newswires

February 08, 2018 17:02 ET (22:02 GMT)

Copyright (c) 2018 Dow Jones & Company, Inc.
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