Friday, August 17, 2012
Should retirees stay heavily into bonds?
On Thursday, August 16, the New York Times carried a couple of important stories for retirees who depend heavily on bonds.
Mary Williams Walsh offers “Muni Bonds Not as Safe as Thought”. Actually, the rated market, reported by Moody’s, is pretty safe, but a Federal Reserve report on all bonds shows over 36 times as many defaults as generally stated by advisors. The link is here.
The Business Day section also had a big story by Peter Lattman on the growing risk of junk bonds, given the low yields.