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If the maturities are short, there will never ever be any need to sell them prematurely.  Companies don't go from solid to shit in a second. If som they weren't solid to begin with and you shouldn't have bought the bond, unless you're into junk bonds.

It doesn't really matter if you recieve a coupon, or if you but the bond for less than you get back from the issuer, at least if the maturities are short (the bond fund I have has an average amturity of 0.15 years).

Peak oil is not an energy crisis. It is a liquid fuel crisis.

by Starvid (arvid.hallen at gmail.com) on Tue Oct 20th, 2009 at 09:53:18 AM EST
[ Parent ]
Starvid:
an average amturity of 0.15 years
And what's the return on that?

En un viejo país ineficiente, algo así como España entre dos guerras civiles, poseer una casa y poca hacienda y memoria ninguna. -- Gil de Biedma
by Migeru (migeru at eurotrib dot com) on Tue Oct 20th, 2009 at 09:56:08 AM EST
[ Parent ]
About 0.5 % currently. A year ago it was 5 %.

Peak oil is not an energy crisis. It is a liquid fuel crisis.
by Starvid (arvid.hallen at gmail.com) on Tue Oct 20th, 2009 at 10:02:46 AM EST
[ Parent ]

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