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---In a nutshell, a closed end bond fund may offer significant advantage in terms of convenience, and there may be appreciation available. Disadvantages include the fact that the dividend is not stable and the management fees can be excessive.---

Thanks Cris for a great anology,

My experiences are somewhat different, because of the difficulty of disposing of bonds that have depreciated because of rate increases.

The Closed End Funds have consistently given me flexibility to move with rate changes. In fact, the portfolios since the begining of the year have appreciated more than 10%, which allows me to upgrade the issues.

Granted, this kind of trading was very expensive with full service brokers, but with low cost online brokers I have been able to keep my capital position, and total return much more stable than with bonds.

When the bond market becomes an easier market to trade, this view may change, but the in and exit cost of bonds are the hidden costs not recorded.
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