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Short-Term Bond Funds Are Riskier Than They Used To Be

Ken Tumin
Ken Tumin   |     |   5,706 posts since 2009

You may be able to get a slight yield edge with short-term bond funds over savings accounts, but as this CNNMoney.com article described, short-term bond funds may be riskier these days:

With rates so low, some fund managers are trying to juice yields by holding bonds with poorer credit quality, longer durations, or both. That, plus rising rates, means you could lose money. And remember, plenty of short-term bond funds fell by double digits back in 2008.