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Author Topic: Bonds and bond funds  (Read 2472 times)

DaKini

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Bonds and bond funds
« on: January 16, 2014, 01:34:07 PM »
Hello,
for some time now i wonder if individual bonds and bond index funds prices behave differently.
However i was not able to find information on this, only for the behavior of individual bonds...
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KingCoin

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Re: Bonds and bond funds
« Reply #1 on: January 16, 2014, 02:17:33 PM »
Quote from: DaKini on January 16, 2014, 01:34:07 PM
for some time now i wonder if individual bonds and bond index funds prices behave differently.

Yes, in the same way that individual stocks and stock indices behave differently.

As a practical matter, individual bonds are more heavily correlated than individual stocks, since all bond prices are heavily influenced by interest rates.
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CanuckExpat

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Re: Bonds and bond funds
« Reply #2 on: January 16, 2014, 05:24:45 PM »
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DaKini

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Re: Bonds and bond funds
« Reply #3 on: January 16, 2014, 10:47:05 PM »
Great, thank you both!
This helps me alot!
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