So you think bond funds are safe? Think again

Allan Sloan Jun 5, 2013

Stocks are risky, but bonds are safe, or so goes the stereotype. Buy a solid bond — the logic goes — and you get your money back at maturity with interest. Then there are bond mutual funds, which are built on bonds, but are a very different animal than straight up bonds. As interest rates have risen over the past month, dividends for some of the nation’s largest bond funds have been all but wiped out.

Allan Sloan, senior editor at large at Fortune magazine, joins Marketplace Morning Report host David Brancaccio with the latest.


As a nonprofit news organization, our future depends on listeners like you who believe in the power of public service journalism.

Your investment in Marketplace helps us remain paywall-free and ensures everyone has access to trustworthy, unbiased news and information, regardless of their ability to pay.

Donate today — in any amount — to become a Marketplace Investor. Now more than ever, your commitment makes a difference.