As Ashleigh Ebeling explains, with 10-year Treasury yields hovering near multidecade highs, some investors are looking to add more fixed income to their portfolios. They are moving cash to 2-year Treasurys, building ladders of Treasury inflation-protected securities, and buying target-maturity bond funds. Bonds can offer income, safety, and diversification. But for those wading in, they also come with a unique set of risks, including credit risk, duration risk, call risk, prepayment risk, and tax risk. Those risks need to be understood before diving in to what might be the best the bond swimming pool has been in a long, long time.
[EOP]
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