2006-07-01 05:51:19 · 4 answers · asked by Lauren 1 in Business & Finance ➔ Investing
Mortgage IOs, I believe. Interest rates bottomed out in mid-2003 and went up ever since. An interest-only (IO) mortgage strip is the only fixed-income instrument that goes up in price when interest rates go up. Everything else in the fixed-income universe tends to go down in response to rising interest rates.
2006-07-01 07:11:29 · answer #1 · answered by NC 7 · 0⤊ 0⤋
I believe the answer to your question is the foreign bond sector. But frodo has a good point. Foreign bonds entail great risk. CD's won't break down like foreign bonds will.
Further, junk bonds have out-performed governments and high-grade corporates the past 3 years. But there is a reason they always say past performance does not guarantee future performance.
With the Fed-induced potential slowdown in the economy, just might see a reversal in all trends of the last 3 years.
2006-07-01 14:12:38 · answer #2 · answered by jalfredprufrock 2 · 0⤊ 0⤋
For the next three years, go with Canadian Bond Funds. Foreign, yes, but not so much...and not pegged to the performance of the USD.
2006-07-01 20:12:36 · answer #3 · answered by Anonymous · 0⤊ 0⤋
www.morningstar.com fund screener. Try CD's they have had better returns.
2006-07-01 13:03:05 · answer #4 · answered by frodo_lives_9991 1 · 0⤊ 0⤋