Vanguard's investment chief cautions bond investors

[chinaco]

Just saw this... thought you would want to read it.

Bonds have been on a roll, with double-digit returns posted by several fixed income categories this year. Such a winning streak may tempt you to think you've got a free lunch: return with no risk.
That's hardly the case...

https://personal.vanguard.com/us/insights/article/sauter-cautions-investors-11222010

 

[Free To Canoe]

Basic bond stuff. Nicely presented.

Free to canoe

 

[chinaco]

Yes. But many are not aware of how the bond market works (and consequently Bond Mutual Funds). Therefore they are chasing yield.

I believe it is being called out as fair warning to customers. Don't come crying when rates go up.

 

[teejayevans]

Does VG have any closed-end funds, then you would not be hurt because you keep the bonds till they mature?
TJ