Zeev's Turnips Patch-No Politics (ZEEV)

[Benj]

>>The point I was trying to make was that most folks buy bonds to diversify their portfolio and have an element of less risk>>

Joe, I realize this but I thought we gravitated To "junk" and "junk" applies to securities that the ratings agencies feel have a doubtfull or at least questionable prospect of making good on their obligations. This would not apply to the above. If you are a buy and holder of these bonds till maturity you are betting that in 3 or 5 or 7 years that this entity will be solvent and you will be out nothing, but with the economic picture today this is less than a sure bet. That is why I say the risk is there as well as the other ramifications of interest rate changes and so fourth. The last time I looked there were only 5 corporate bonds that had AAA ratings and It would not suprise me if it was even less today. Conditions are continuating to deteriorate and thus the risk in this whole arena is real.
I would be looking at "junk bonds" merely to enhance the performance of my cash position but for me there is no illusion of risklessness. Thanks for taking the effort to clarify my misunderstanding, I appreciate your ideas.

Benj