The Motley Fool Discussion Boards

Previous Page

Investing/Strategies / Bonds & Fixed Income Investments

URL:  http://boards.fool.com/this-analysis-is-really-comparing-a-bond-fund-to--31145174.aspx

Subject:  Re: What's Safer: indiv bonds or bond funds? Date:  3/1/2014  11:55 PM
Author:  DrTarr Number:  35217 of 35392

This analysis is really comparing a bond fund to - well a bond fund. He rebalances and matches the duration and convexity every year. He just rebalances by selling bonds in the "fund" and redeeming them in the "ladder". Rocket Science....

And investor in a ladder can increase or decrease the duration as they see fit. A fund has limits...

(Duration)/dT
Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us