Summary of Bond Funds: Interest-Rate Risk and Credit Risk
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Summary of Bond Funds: Interest-Rate Risk and Credit Risk
Interest-rate risk and credit risk are the big concerns for bond investors. Hopefully you now have some awareness and understanding of these things. If you should buy into a bond fund, they are things that you will probably worry about once in a while.
And back at the dinner table, those glazed eyes will clear up and the gaping mouths will close once all that bond jibber-jabber starts to make sense. If not for your dinner guests, then at least for you.
What you have learned
- Understand Interest-Rate Risk
- Understand Credit Risk