Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
Hopefully, none of us here, will be severly stung when some bond types rotate away from capital appreciation; for whatever reasons. One would also hope that active managers of some bond funds would be able to adjust for changes, regardless of maturity of holdings. These are the "steriod" tools that may be in place within a fund's prospectus for "adjusting" holdings. I suspect, if a large negative run on bond pricing comes into place; some damage will be done, whether holding individual bonds or the best of managed bond funds. The same aspects would also apply to various equity sectors. Not unlike the period beginning in mid-2007 through Mar. 2009; if there are more sellers versus buyers, prices go down, period.
Comments
One would also hope that active managers of some bond funds would be able to adjust for changes, regardless of maturity of holdings. These are the "steriod" tools that may be in place within a fund's prospectus for "adjusting" holdings.
I suspect, if a large negative run on bond pricing comes into place; some damage will be done, whether holding individual bonds or the best of managed bond funds.
The same aspects would also apply to various equity sectors.
Not unlike the period beginning in mid-2007 through Mar. 2009; if there are more sellers versus buyers, prices go down, period.
Regards,
Catch