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  1. 15-10-2018, 05:38 AM #11
    GTM 3442
    GTM 3442 is offline
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    Quote Originally Posted by blackcap View Post
    That is the question I have too. Rising interest rates could decimate a bond fund. Or do these funds just buy at par when a bond is issued and hold till maturity and take the interest along the way, ignoring the rise and fall in the actual value of the underlying securities?
    AFAIK, because they have money coming in all the time, they have no option but to buy on the secondary market.
    Last edited by GTM 3442; 15-10-2018 at 05:39 AM. Reason: Add important preposition
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