Evaluating Yield Curve Strategies in Rising Rate Environment

As a portfolio manager for fixed income securities, you have been tasked with evaluating different yield curve strategies based on current market conditions. Recently, there has been an upward shift in interest rates and increased economic volatility. Given this scenario, analyze the implications of utilizing a steepener strategy versus a flattener strategy in your fixed income portfolio. Discuss the factors that would influence your decision between the two strategies, the potential risks involved, and how each approach aligns with your investment objectives.

In your response, be sure to consider the impact of duration, credit risk, and economic indicators on your yield curve strategy. Additionally, provide real-world examples to support your arguments.