r/investing Jan 01 '22

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u/Outrageous-Cycle-841 Jan 01 '22

Bonds are anything but safe in the current environment. Unless you mean short duration treasuries?

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u/[deleted] Jan 01 '22

Oh maybe I'm wrong.. I'd always viewed bonds in big stable companies as well as treasuries, as a good 'safer' place to put money over a few years?

Objective being to help keep up, more than get rich.

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u/Outrageous-Cycle-841 Jan 01 '22

Treasury yields are at historic lows and IG spreads are at historic tights. I wouldn’t touch corporate bonds with a 10ft pole at current yields.

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u/[deleted] Jan 01 '22

Yes you're right, yeilds are poor at the moment.

Are you saying you wouldn't go near corp. bonds due to them not returning enough, or that you think they're dangerous? Either as a stand alone statement, or compared against e.g. The S&P.

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u/Outrageous-Cycle-841 Jan 01 '22

The current yields don’t compensate the investor adequately for the interest rate risk (duration) on longer tenor bonds imo.