 |
|
Bond values ARE affected by interest rates. The more rates
Posted on: September 13, 2022 at 10:20:59 CT
JeffB MU
Posts:
64903
Member For:
20.41 yrs
Level:
User
M.O.B. Votes:
0
rise the more it reduces the value of existing bonds... those values will drop. Conversely, if interest rates are going down, that increases the value of fixed rate bonds that were already issued.
The bond funds own a basket full of bonds, so to speak. If the value of each of their individual bonds goes up, so does the value of the bond fund itself... and vice versa.
Rising interest rates are usually bad for virtually all asset classes other than cash.
Edited by JeffB at 10:21:54 on 09/13/22
The bond funds own a basket full of bonds, so to speak. If the value of each of their individual bonds goes up, so does the value of the bond fund itself... and vice versa.
Rising interest rates are usually bad for virtually all asset classes other than cash.
Edited by JeffB at 10:21:54 on 09/13/22
Please explain why this message is being reported.
MESSAGE THREAD
Bond values ARE affected by interest rates. The more rates - JeffB MU - 9/13 10:20:59