No. of Recommendations: 0
Most of the ones in the first 100 were in the 20-30 year range, with call provisions, many insured, with yields as high as 5% plus,

If a bond has call provisions, you should mentally lower its yield a bit when comparing with noncallable bonds. The longer term the bond, and the more call dates there are, the more the yield should be lowered.

the end result would be a somewhat lower yield than the fund, but without having interest rate risk worries

Are you talking about interest rate risk to principal, or payment amount risk to the payment stream you receive, or reinvestment risk as to what you're going to do with the coupon payments?$

Me, I mark-to-market, so I do consider there to be interest rate risk to principal when buying individual bonds.
Print the post  

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
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.
Advertisement