Last week I mentioned exchange traded debt securities as a way to goose the interest yield on ones cash reserves? You warned that that was a bad idea. Since then, a senior unsecuried bond I've been watching (ticker GJM) has dropped about 5% in in value. In just a week. That's not a big deal if your time horizon is large, but would be awful if it was a significant part of someone's emergency funds and they took a 5 or
10% hit and then had to take out the money before ever collecting any interest payments (and the broker fees for a final insult).I just thought I should mention it since the example makes your point.
I also might buy some GJM next week as a long-term holding.
Thanks, regards, Bob