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Re: OldAIMGuy post# 14564

Sunday, 11/28/2004 8:36:49 PM

Sunday, November 28, 2004 8:36:49 PM

Post# of 48392
Interest rates going up....hmmmm....for those of us holding EAD, ACG, or other hi-income bond funds, we don't really want to sell those funds and lose monthly income...also we do not want to take a huge draw down as interest rates go up.

So, what can we do? I've been considering buying some RRPIX (a 125% inverse of the 30 year treasury bond), so when interest rates increase, so does RRPIX. I would appreciate comments on this hedging approach.


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