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Rich,

Think about what you're asking. Why is the FED having to buy bonds (both corporate and gov't)? Because there wouldn't be much demand for them otherwise. If no one else wants them, why should you?

In essence, making money with bonds depends on getting right one of two bets. You're either betting on the level/direction of interest-rates, or on the level/direction of an issuer's credit-worthiness. In short --if you're betting long-- bond investing/trading is a value gig. You're trying to "buy low and sell high".

Since 2008, nominal interest-rates have been near zero (and negative on an after-taxes/after-inflation basis), a very artificial and unsustainable situation that's going to blow up. Hence, the smart money bet is to short the FED and and its money-printing scam. (IMHO, 'natch)

Arindam
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