No. of Recommendations: 1
Closed end bond funds can also be decimated by calls, and the manager have to buy at the wrong time.

If you must have units in a pool, there are unit investment trusts. The brokerage that puts it together and the broker who sells it to you both get hefty commissions, but there is the little wrinkle that the thing begins at a certain time, and after that date no more buying will be done. Therefore, when bonds are called, the manager distributes the money to the unitholders and you can go find another investment just as you would if your bond had matured. The sponsor will make a market, and if unitholders want out early, the manager will sell enough bonds to meet the redemption, (for a fee, of course). At the outset, you know the maturity dates of the bond in the trust, so it has an end date when the last bond matures or gets called.

Best wishes, Chris
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