luckyiknow
Dryer sheet wannabe
- Joined
- Feb 21, 2011
- Messages
- 10
I have a lot of my money in short and intermediate term municipal bonds, but the question would apply to any bonds I assume. When I read about bond markets "tanking" or getting "slammed," I never really understand--I get that they're talking about the market value of the bonds and that yields and market price are inversely correlated. But if the market price of your bonds go down isn't the solution to not sell them? When the bonds mature I'll get back all my principal (put aside default risk for the present discussion). So why do I care about the trading value of my bonds?