Largest Bond ETF Now Trading At a Massive Discount [View article]
From a typical bond fund disclaimer:
"Risks include interest-rate risk, market risk, credit risk, foreign security risk, and prepayment risk. A decrease in interest rates usually causes an increase in value of bonds. An increase, or the expectation of an increase in interest rates generally causes a decrease in the value of bonds."
I'm sure there are other bond funds that depend on other specific conditions. Anyone wish to add to this thread?
Largest Bond ETF Now Trading At a Massive Discount [View article]
I'm surprised that the author did not review the conditions under which a bond fund would drop in value. Just like the brokers that sell municipal bonds to retirees, baiting them with tax advantages and interest rates, they imply that bonds do not lose their face value. Everything can lose value, and this article's failure to review that undermines the author's assertion.
Largest Bond ETF Now Trading At a Massive Discount [View article]
"Risks include interest-rate risk, market risk, credit risk, foreign security risk, and prepayment risk. A decrease in interest rates usually causes an increase in value of bonds. An increase, or the expectation of an increase in interest rates generally causes a decrease in the value of bonds."
I'm sure there are other bond funds that depend on other specific conditions. Anyone wish to add to this thread?
Largest Bond ETF Now Trading At a Massive Discount [View article]