"Building a Bond Portfolio"
Fixed income Portfolio Manager George Strickland discusses buying bond funds vs. individual bonds, the laddered bond strategy, and managing risk in bond investing on PBS Nightly Business Report.
Learn more about Thornburg Fixed Income Funds and the laddered bond portfolio. Read an overview of bonds and Thornburg Funds in A Tradition of Disciplined Bond Management (pdf).
See our glossary for definition of terms.
Important Information
The views expressed by the Portfolio Manager reflect his professional opinion and should not be considered buy or sell recommendations. Commentary by the host and other guest is not endorsed by Thornburg Investment Management.
Diversification does not assure or guarantee better performance and cannot eliminate the risk of investment losses.
The laddering strategy does not assure or guarantee better performance than a non-laddered portfolio and cannot eleiminate the risk of investment losses.
A bond credit rating assesses the financial ability of a debt issuer to make timely payments of principal and interest. Ratings of AAA (the highest), AA, A, and BBB are investment-grade quality. Ratings of BB, B, CCC, CC, C and D (the lowest) are considered below investment grade, speculative grade, or junk bonds.
Investments in the Fund carry risks, including possible loss of principal. Bond funds have the same interest rate, inflation, and credit risks that are associated with the underlying bonds. The principal value of bonds will fluctuate relative to changes in interest rates, decreasing when interest rates rise. Unlike bonds, bond funds have ongoing fees and expenses. Investments in the Fund are not FDIC insured, nor are they deposits of or guaranteed by a bank or any other entity.
There is no guarantee that the Funds will meet their investment objectives.
Before investing, carefully consider the Fund’s investment goals, risks, charges, and expenses. For a prospectus containing this and other information, contact your financial advisor or visit our literature library. Read it carefully before investing.
