Hope none of your clients were in Schwab Yield Plus

I think bond funds are like medicine. I don't like them but I am told I have to have a "balanced" portfolio. Over the past 10 years I probably could have doubled the size of my portfolio if I didn't own any bond funds.

Frank

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Was that based on "auction rate bonds"? These paid slightly more than other short paper, but became illiquid this year. They may recover as the Fed increases liquidity.

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It's only an opportunity if they're still holding the assets that lost so much money...

-Will

william dot trice at ngc dot com

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It's possible that some of the great bargains may be had in a situation like this via a *closed* end fund rather than an open-ended one. CEFs have the advantage during market turmoil of not having to sell stuff off at the worst possible time in order to pay out redemptions, so they may be able, in fact, to continue to hold the securities in question.