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Jonathan Clements: Why Many Bond Funds Are As Volatile As Stocks

TedTed
edited December 2014 in The Bullpen
FYI: When stocks tumble, bonds are supposed to salvage your portfolio’s performance. But it turns out that many bond funds behave suspiciously like stocks.

The classic example is high-yield “junk” bond funds, which own debt issued by companies with shaky finances. Investors have long been warned that junk-bond funds tend to trade more like stocks than bonds.
Regards,
Ted
http://www.marketwatch.com/story/why-many-bond-funds-are-as-volatile-as-stocks-2014-12-06/print
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