Corporate bonds are not 100% correlated with either stocks or Treasuries. Therefore, they provide diversification. They also can provide somewhat higher return with somewhat higher risk, which makes having a portion of fixed income in corporate bonds.But as already discussed here, what risks are you limiting? Wouldn’t it be diversification only if corporate bonds are reasonably uncorrelated with both treasuries and equities?Why own bond funds with corporate holdings?
Diversification.
Statistics: Posted by rkhusky — Mon Feb 19, 2024 12:25 pm — Replies 30 — Views 2032