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Safety Of Hold-To-Maturity Bond Funds & Other "Safe" Investments

Ken Tumin
Ken Tumin   |     |   5,741 posts since 2009

From CNNMoney.com:

The financial industry's wizards have increasingly been pitching a bunch of investments -- some new, some updated versions of old classics -- with soothing descriptions like "absolute returns" and "principal protected." Of course, this was the same industry that made mortgage-backed securities sound safe just a few years back.

The article provides a good overview of the following "conservative" investments: Hold-to-maturity bond funds, Floating-rate bank loan funds, Absolute-return funds and Principal-protected structured notes.