Climbing the Ladder: How to Manage Risk in Your Bond Portfolio
by Steven Bohlin
The stock market crash of October 1987 was highly dramatized in the media. But during that year, more money was lost in long-term bonds and bond funds than in stocks.
Interest rates fluctuated widely throughout the year, then rose dramatically by the end of that year. This caused the bond market to lose significant value.
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In this article
- The Risks
- The Solution: Laddering
- Managing Market Price Risk
- Managing Reinvestment Risk
- Why Does This Tactic Work?
- Other Considerations
- Summary
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In this article
- The Risks
- The Solution: Laddering
- Managing Market Price Risk
- Managing Reinvestment Risk
- Why Does This Tactic Work?
- Other Considerations
- Summary
Share this article
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