Closing Thoughts: Target-Duration Bond Funds
I would like to close this book with a request to readers who might have some influence in the real world. There have been many innovations in the asset management industry over the years, including stock-index funds, industry-specific equity funds, exchange-traded funds, and, recently, target-date retirement funds. From my perspective as a conservative investor, I keep waiting for what seems to me to be the obvious next step—target-duration bond funds.
Fixed-income bond funds typically are identified by: issuer type to signal credit risk—government, agency, (investment-grade) corporate, or high yield—and average maturity to signal interest rate risk—ultra-short, short-term, intermediate-term, or long-term. ...
Get BOND MATH: The Theory Behind the Formulas now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
