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Subject:  Re: What's Safer: indiv bonds or bond funds? Date:  3/19/2014  4:30 PM
Author:  aleax Number:  35229 of 36384

Also, like the CEF, one can purchase the ETF versions, and avoid the 'forced sale' of the MF. Especially an 'active ETF' like Pimco's (BOND), which is managed by Bill Gross.

Bingo. My largest single exposure to debentures is via HYLD, an ETF which is actively managed -- with considerable latitude! -- and focuses on junk bonds.

My second largest is with a Nuveen CEF (also actively managed) focused mostly on high quality California munis -- with modest leverage.

I've given up on trading individual bond issues -- to get enough diversification you end up trying to own so many that trading friction and illiquidity kill you. The bond market is much less friendly to individual investors than the stock market (where ETFs and CEFs also trade) -- unless you go for Treasuries, where Treasury Direct is fine (but I'm eschewing US Treasuries at present -- corporate, munis, and a few foreign exposure, are my current choices for my debentures).
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