+1Bond funds are not a substitute for CDs. Don’t take on more risk to chase yield.
And it’s almost impossible to anticipate interest rate changes. Nobody knows.
Define safe. Bonds have a risk of default. It's usually very low, but if things go really really bad, it may not be so low. All other investments will probably get whacked too. In normal times, a bond fund will give you the protection of numbers to minimize the effect of a few defaults. Investing in individual bonds, you need to do a little research and try to diversify as best you can. I'd bet most of the individual bond investors here have never had one of their bonds default.How safe are short and intermediate bonds, when it looks like the interest rates may go up, sell them ?
Bond funds are not a substitute for CDs....
The problem with talking about bonds is... there are different kind of bonds with different risks.... are you talking about treasury bonds.. corporate bonds....muni bonds.... the list is long and each of those categories you have other choices with risk... short term...long term... ect..ect...
each type of bond has its own way to invest in them...
I suppose you're right. For some reason, I came up with around a 2% 30 day yield.
I've got a coinbase (regular, not pro yet). Can you talk about the basics re staking cryptocurrencies? Any tips, cautions? I've got about 25K spread out over various coins with 30% of it BTC on regular coinbase. Considering doing some staking but want to be sure I understand the risk vs. rewardI converted SOME of my cash to USDC stable coin at Coinbase and distributed it between 3 lending platforms: Celsius (10.51% https://celsius.network/rates/) , BlockFi (8.6% https://blockfi.com/rates/) and Nexo (10% https://blockfi.com/rates/). It works for me and all 3 have been paying interest diligently as per their terms.
I've got a coinbase (regular, not pro yet). Can you talk about the basics re staking cryptocurrencies? Any tips, cautions? I've got about 25K spread out over various coins with 30% of it BTC on regular coinbase. Considering doing some staking but want to be sure I understand the risk vs. reward
I tested a high yld treasury bond the last few months by buying the bond a day after the coupon payout and just held it till the next coupon payout and sold it the next day... its kinda scary buying a treasury at 47% above par just to hold it for the coupon and sell it back at the same valuation... but it is doable... lots of money to be made these days...
Target maturity bond funds are very similar to CDs in that they invest in bonds that mature in a specific year and they do a terminal distribution in December of the target year. They are in a space between individual bonds and bond funds... but more similar to holding a proportional interest in a portfolio of individual bonds maturing in a specified year. There are treasury, muni and corporate flavors. Obviously the corporate version has a higher yield.... probably ~0.90% vs 0.50% or less for a 5-year CD... but there is credit risk associated with these... for IBDQ, 55% of its holdings are BBB, 35% A and most of AA or better.
How safe are the Target maturity bond funds ?
I have a ladder of the corporates. They've behaved like most good corporate bond funds. No complaints.How safe are the Target maturity bond funds ?
I don't think I've ever seen the terms "high yield" and "treasury bond" used together....what exactly does it refer to? High yield is generally used for less than investment grade (e.g. "junk") bonds but treasury bonds would not fall into that category. And how can a bond priced 47% above par produce a high yield?