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<p>[QUOTE=&quot;GoldFinger1969, post: 8653391, member: 73489&quot;]They&#039;re used interchangeably.&nbsp; The &quot;rates&quot; the Fed controls are the Fed Funds Rate and probably the 2-year Treasury Note yield which is most sensitive to the Fed Funds and futures market for Feds Funds.</p><p><br /></p><p>Rates can also refer to the fixed coupon on a bond that does NOT change....but the yield does change as the bond price rises or falls.</p><p>Yup, except rates on a %-basis already quadrupled on the short end and nearly doubled at the longer end.&nbsp; Unless they are going to 8-10% a year from now, the rate of change has to slow (a losing bet from 1970-1981 <img src="styles/default/xenforo/clear.png" class="mceSmilieSprite mceSmilie8" alt=":D" unselectable="on" unselectable="on" />).</p><p><b><span style="color: #0000ff">You should buy the flagship bond funds of big mutual fund families to start out. </span></b> I own other, higher-yielding funds that sometimes invest in riskier bonds or use leverage -- wait on them. <img src="styles/default/xenforo/clear.png" class="mceSmilieSprite mceSmilie8" alt=":D" unselectable="on" unselectable="on" /></p><p><br /></p><p><b><span style="color: #b30000"><u>I like the DoubleLine flagship fund DBLTX run by modern Bond King Jeff Gundlach....also his West Coast competitor PIMCO&#039;s PONAX fund that also yields over 4%.&nbsp; The Dodge &amp; Cox Income Fund DODIX is also a conservative bond fund.</u></span></b></p><p><br /></p><p><b>Most bond funds will have large holdings of mortgage-backed securities (MBS) because</b> the spread (the bonus yield above risk-free treasuries) is pretty high right now.&nbsp; It&#039;s also high for corporate bonds.</p><p><br /></p><p>As always, do your own DD and know what you are buying.&nbsp; But bonds are generally a low-risk investment and having already taken a shellacking in 2022, most of the risk is out of them....unless you think the 1970&#039;s and Jimmy Carter are around the corner. <img src="styles/default/xenforo/clear.png" class="mceSmilieSprite mceSmilie8" alt=":D" unselectable="on" unselectable="on" />[/QUOTE]</p><p><br /></p>

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