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Without going into a lot of detail, suffice it to say that leveraged bond funds are extremely risky. They basically operate like this: As interest rates go down, they offer substantially above-average returns. Increasing not only NAV, but also interest paid-out. BUT if interest rates go up, the NAV and interest paid-out drops substantially.

High rates equal high risk. With any bond-type investment, ask 2 questions: What if rates go up? What if rates go down?

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