No. of Recommendations: 0

Income Investors Rediscover Bonds
Market Rout of Recent Weeks Has Boosted Yields to Levels
That Are Irresistible to Some; Locking In at 9.03%
Wall Street Journal, September 5, 2007; Page D1

A flood of selling by hedge funds and institutional investors has depressed the prices of a wide variety of bonds in recent weeks. Now, individual investors are being lured by the attractive yields on many of these income-generating investments.

As prices have declined on many bonds, ranging from investment-grade corporate issues to high-yield, or junk-rated, municipal bonds, their yields have gone up. Some bonds with good credit quality are offering yields as much as half a percentage point above where they were just a few weeks ago, while yields on junk-rated issues are up as much as two or three percentage points....

There are risks, of course, to stepping back into the bond market when prospects for the economy remain uncertain.
[end quote]


I have been considering a low-cost investment grade bond fund, such as Vanguard Long-Term Investment-Grade Fund Investor Shares (VWESX), which currently yields 6.06%.


Print the post  


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.
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.