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by DennisP
2493 days ago
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Not a safer asset, but possibly a more profitable one, since if interest rates go down even further, you can sell your bond for a capital gain. To see how the numbers look out, go to https://portfoliocharts.com/2019/05/27/high-profits-at-low-r... Of course if interest rates go up, you have to keep the bond until it matures (earning less interest than you would with a new bond), or sell it for a capital loss. But this is always a risk with long-term bonds, and institutions still hold them. |
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