watch your corporate bond funds

    Posted by zach06 on 4th of Feb 2011 at 03:12 pm

    Shouldn't corporate bond funds go down when interest rates go up?   HYG is up today...? 

    High Yield vs Investment Grade

    Posted by lessarda on 4th of Feb 2011 at 03:18 pm

    High yield will tend to trade in line with risk-taking/equities more than in reaction to interest rate moves.

    Their interest rates are high

    Posted by tomoboyle on 4th of Feb 2011 at 03:16 pm

    Their interest rates are high and if the market feels the economy is picking up then fewer

    and fewer of the bonds will default, thus risk goes down and price goes up. 

     

    got you.

    Posted by zach06 on 4th of Feb 2011 at 03:16 pm

    HYT is up and PHK is down today... go figure.

Newsletter

Subscribe to our email list for regular free market updates
as well as a chance to get coupons!