Are Corporate and Muni Bonds a Safe Haven?
By Christopher Galakoutis
Wednesday, July 7 2010 9:17 AM

With the stock markets seesawing their way out of the public’s comfort zone since the dramatic declines of 2008-2009, many investors have turned to the “safety” and “security” of bonds for piece of mind.

Is that piece of mind warranted?

We don’t think so.

In early May of this year we read in the Financial Times that prices of US junk bonds, as measured by the Bank of America Merrill Lynch index, had rallied closer to par than at any time since June, 2007.

Readers will note that was prior to the most damaging waves of the credit crisis.

Read the remainder of this piece at Alrroya.com.



Alrroya.com is a bi-lingual financial news portal in the United Arab Emirates.