Ask Terry Questions Bond rates

Bond rates

By Terry Savage on May 09, 2020 | Investments

Are corporate bond EFT’s a good alternative to individual low paying corporate bonds right now?

Terry Says

An ETF is just a pool of bonds. When interest rates go up, bond prices go down. Where do you think interest rates are going from here??? Put it another way, rates can’t go much lower! So the price of the ETF will fall when rates start rising. Is it worth that risk to get a bit more interest payment? Not for me!

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