Yeah same here. I don’t touch floating rate funds with a 10 foot pole. They require market timing. They are junk debt and you can get burned badly if you don’t anticipate a recession in a timely manner.
the fidelity one is very very short duration. not a problem at all . even 2022 was pretty flat .
last issue was 2008 but that was a outlier for most bond funds .
even my money market broke the buck and we got locked out and lost money .
fidelitys most conservative bond fund the ultra conservative bond fund got crushed .
but those issues with toxic derivatives have been rectified .
because it such short duration it has been pretty stable. most loans are just a couple of days or a few months.
want to know what’s scared ..most non govt bond funds are loaded with BBB.
that is the sweet spot and now 70% of all non govt bond money is in that segment .
that is the last stop for investment grade .
any credit down grades in a downturn can have every fund , insurer , pension fund , etc have to dump these in mass if they are restricted to investment grade .
moody’s calls it the elephant in the room today and the likely source of the next blow up