Corporate Bonds

Archive for November, 2005

Question: Corporate Bond Mutual Fund Opinion?

What is your opinion about this fund? The risk/safety or when it would increases or decreases?

Answer: likely very good returns.

here's why.
1. us treasuries are expect not to return very much in the near future
2. the economic is improving, thus corporate profits are increasing. This probably will reflect in the coupon price of the bond.
3. By law bondholders have to be paid out first, before any one else. So even if the corporate bond defaults, you will still get most of your asset back.

Financial Striaght Talk: Financial Investment Retirement Plan: 401k, Bonds, Mutual Funds