FYI: Investors have been nervous about the possibility of rising interest rates for a number of years now. Since bond prices fall as interest rates rise, this possibility has many investors worried about their exposure to interest rate risk. A common refrain on reducing this risk that I have heard many times over the years goes something like this:
I don’t want to be caught owning bond funds in a rising rate environment. It’s much safer to own individual bonds and simply hold them to maturity. That way I am assured of getting my principal back and not taking any losses.
Regards,
Ted
http://ritholtz.com/2018/04/carlson-misconceptions-individual-bonds-vs-bond-funds/
