How safe is the Corporate Bond Market for your RetireFund?

Bonds are Safe!  Bonds are where you put your money when stocks begin to swoon!

At least, this is the general consensus after 20+ years of a Bond bull market (and all the marketing info pumped into our heads by the investment community)

However, things have changed in the Corporate Bond Market, (and treasuries) and not for the good!

Besides al the talk of trade wars, and the coming worldwide Debt bomb, Investors already wary of a bubble in Treasuries should also be aware of what is going on in the "Corporate" Bond market now!

There are now over $52 Trillion dollars in Corporate Bond issues, over twice the amount there was in 2008 before the financial crisis. According to a recent Bloomberg analysis, "The duration of (those) $52 trillion of Investment-grade bonds now stands at 7"!

That means, if rates rise 1% these bonds would lose 7% of their market value. A 1/2 % point jump would be 3.5% or a 1.8 Billion dollar loss.

With interest rates near all time lows, after a 20 year bond bull market, it maybe time now to re-evaluate your bond positions, especially if you are nearing retirement.

 Also, if you are considering the U.S. Treasury bond funds, then consider this chart AND the fact that all funds charge a fee, every single year, to hold them.

No one, especially this writer, has a crystal ball, however, if you are in or approaching retirement, in the USA or Canada, then you should pay attention to these developments.

Oh yes, pay down and pay off your own debts. Your Retire Fund will thank you for it!