Talk of The Villages Florida - View Single Post - I just don't get the wisdom of investing in bond funds.
Thread: I just don't get the wisdom of investing in bond funds.
View Single Post
 
Old 11-13-2023, 09:43 AM
spinner1001 spinner1001 is offline
Senior Member
Join Date: Dec 2020
Posts: 427
Thanks: 59
Thanked 261 Times in 158 Posts
Default
Quote:
Originally Posted by collie1228 View Post
Is that true? If I keep the bond to maturity, I don't care a bit what it's value is on a bond market. I get paid the principal. What am I missing?
See section 10 in this paper (link below) for what you seem to be missing. The author is a prominent guy in the financial world with skin in the game (founder of AQR Capital Management) and his PhD academic advisor was Nobel prize laureate Gene Fama.

https://www.aqr.com/-/media/AQR/Docu...-10-Peeves.pdf

Feel free to disagree with the paper’s section 10 but at least please tell us what points in that section you believe are wrong and why.

Here is a bio about the author if you doubt his credibility or knowledge. Feel free to tell us about yours.

Cliff Asness - Wikipedia