The Motley Fool Discussion Boards

Previous Page

Investing/Strategies / Bonds & Fixed Income Investments

URL:  http://boards.fool.com/closed-end-bond-funds-12493884.aspx

Subject:  Closed End Bond Funds Date:  4/30/2000  9:29 PM
Author:  hunter431 Number:  606 of 35345

As a recent retiree, I have decided I need to put a portion of my assets into bonds. I notice that several closed end bond funds are selling at discounts to NAV that approach or even exceed 20%. This looks like an opportunity to obtain 120% of market rate returns at the risk that the discount will go even higher. Since I expect to hold for a long time, this looks like a good risk/return situation to me. The question is, "What am I missing here?". Looks too good to be true. Why aren't banks and insurance companies doing this?
Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us