Bond funds embrace longer durations


In an extremely low-rate environment, the bond buy-side will be tempted to invest in risker fare. Banksand some bond funds are alerady doing that, notes Fortune. "The average duration of intermediate bond funds is four and a half years, which is up slightly from two years ago. For long-term bond funds it's nine years, up from just over seven and a half two years ago." There's a lot of debate as to what constitutes "overly risky" in this environment. Article

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