- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
re: Buying bonds in laymans terms
Posted on 12/5/12 at 11:45 am to Tmacelroy12
Posted on 12/5/12 at 11:45 am to Tmacelroy12
I'm thinking of liquidating my equities in the near future for a while til I get a better grasp on future economic growth potential. I need a safe harbor for a yr or 3. I've never owned any bond funds. Would the vanguard ginnie mae fund fit this bill? Is there much risk? Pays 2.4%, 3.4 duration, and low expense. It's a taxable broker account at vanguard.
2
Posted on 12/5/12 at 11:57 am to Nawlens Gator
quote:
Is there much risk?
Credit risk? No.
Interest rate risk? Yes...a bunch. Even with a duration of 3.4 you could see an entire year's worth of income wiped out in a loss of market value if rates spike up at all.
Posted on 12/5/12 at 12:22 pm to Nawlens Gator
quote:
Would the vanguard ginnie mae fund fit this bill? Is there much risk? Pays 2.4%, 3.4 duration
Low risk from your duration and the explicit government guarantee but there is no upside in price anymore and you're only picking up 2.4%. Any investment grade corporate bond fund would do you better over the next couple years.
Page 1 of 1
Popular
Back to top
Follow TigerDroppings for LSU Football News