The Impact Of Interest Rates On Bond Funds

The Impact Of Interest Rates On Bond Funds by Covenant Capital Management “…investors are led to believe that the very name ‘bond’ must carry some special assurance against loss. This attitude is basically unsound, and on frequent occasions is responsible for serious mistakes and loss.” – Benjamin Graham, Security Analysis “Fixed Income,” the very moniker conjures up the perception of safety and stability. An investment that provides both a scheduled payout- however large, small or infrequent- and returns your initial investment seems like a sure winner. But the apparent safety of investing in bonds dissipates quickly upon further inspection. “Low…