Thread: indexing bonds
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Re: indexing bonds
Old 11-30-2006, 07:01 AM   #2
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Join Date: Mar 2003
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It depends on your reasons for maintaining a bond position. I tend to like the indexes because you know exactly what you are getting. There is (virtually) no chance that the manager made a big bet on credit or duration at an inopportune time. If you truly think you have found a superior manager in the bond world that will not do stupid things, then it might be worth departing from the index fund, but I would have a hard time believing that it would be worth bothering with a high grade bond fund.
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