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Saturday, August 28, 2010 - 6:21 AM

Maximizing Yield On Your Bond Portfolio

Higher yields on bonds often results in more risk. This WSJ article provides a few tips to increase bond yields while minimizing risk. This excerpt shows some of the risks to keep in mind:
When 10-year Treasury yields rose 2.5 percentage points from 1993 to 1994, the value of long-term Treasurys dropped by more than 5%. Junk bonds, meanwhile, lost 7% from their 1999 peak to their 2000 trough. When the financial system imploded in 2008, junk bonds fell by a staggering 35%.

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KenBDGKenBDG5,146 posts since
Nov 29, 2009
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