Apologies upfront if this has already been discussed.
As many did a few months ago, I sold my bond funds and am now in individual bonds. BTW, at least for now, I really feel good about it and think I have built a fair understanding of the buying discipline for bonds. Famous last words.
As I begin to rebuild my ladder for 2028 and beyond, the same banks that I am invested in already appear to be the best choice. Buying more of the bonds from the same company, means buying more risk.
These are good companies, like the Royal Bank of Canada, that likely won’t default. Having said that, I know I could reduce that risk by buying a similar but lower returning bond or one with a less advantaged call date.
So I am wondering if in the bond world there is a recommendation for limiting investing in one company as a percentage of total assets, bond portfolio or other measurement of your bond portfolio? If no popular recommendation, what rules do you follow.
Thanks