No. of Recommendations: 0
In other words, a junk bond maturing in 4 years that is trading at a discount is likely more to do with the credit quality of the underlying company and not a concern over an increase in rates.

Thanks for the insight.

The important thing for me to remember, when looking at overall portfolio performance, is to ignore the drops in NAV on bond positions when looking at total return.

I have to remind myself that, so long as the company is still in business (not bankrupt) at maturity, I will get back my entire principal and come back to even.

Print the post  


When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.