Ed_The_Gypsy
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
It has been suggested to me by several people that bond funds have a weakness in that they can lose principle, among other things. If interest rates rise later (and I don't see how that won't happen--eventually), I will lose principle.
Purchasing individual bonds has been recommended, but I am not very comfortable with that right now.
What about bond UITs? The bonds in them are diversified and all mature at the same time, if I understand correctly. There is usually no trading--no turnover--in a UIT.n Unless a company disappears, but even then the successor may have to honor the bondholders.
So, how does one evaluate bond UITs? Where can you look up the average bond ratings, the companies in the portfolio, etc.? I have not found such a resource on the web yet but perhaps I am not asking Google the right questions.
I suppose I can call Vanguard's trading desk and ask them, but that will have to wait until I am back in the country.
Please educate me. I am sure we have income-oriented people here who have some knowledge of this critter.
Thanks,
Ed
[The avatar is back!]
Purchasing individual bonds has been recommended, but I am not very comfortable with that right now.
What about bond UITs? The bonds in them are diversified and all mature at the same time, if I understand correctly. There is usually no trading--no turnover--in a UIT.n Unless a company disappears, but even then the successor may have to honor the bondholders.
So, how does one evaluate bond UITs? Where can you look up the average bond ratings, the companies in the portfolio, etc.? I have not found such a resource on the web yet but perhaps I am not asking Google the right questions.
I suppose I can call Vanguard's trading desk and ask them, but that will have to wait until I am back in the country.
Please educate me. I am sure we have income-oriented people here who have some knowledge of this critter.
Thanks,
Ed
[The avatar is back!]