The new period of upper rates of interest has reignited a long-smoldering Wall Avenue debate: Is it higher for abnormal traders to purchase particular person bonds outright? Or shares of bond mutual funds?
Through the yearslong interval of near-zero rates of interest, the reply appeared easy: Funds had low charges and had been simple to purchase and promote, and share values rose alongside bond costs. If anybody bond defaulted, losses had been minimal.
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