What does this mean for markets? Pensions screwed? A need to rebalance portfolios? Or no big deal?
Bond market questions?
- Thread starter snarlcakes
- Start date
What does this mean for markets? Pensions screwed? A need to rebalance portfolios? Or no big deal?
It means people can get almost 6% yield if one know where to look.
When rates rise, bond prices fall. So some bond prices have dropped 15-20%. Those bonds pay a fixed interest dollar amount based on the issuing price, so now a buyer gets that same fixed dollar amount but paid a lower price on the bond. Upon maturity or call, you will get back the face value while the current yield until then is 5.5-6%. Total return will be higher but unknown depending when the bond is called or matures.
I really can't post any specific investments but will say to either do some research or contact a financial advisor.
