The Bond Market Cares About You Even if You Don't Care About It
The Dividend Cafe
00:00
Why Do We Buy Treasury Bonds?
When you go to a corporate bond, even like Apple or J&J which are two of the only companies that have a triple A credit rating, you basically still have some degree of investors may be pricing in an unknown credit event. But their treasuries are the product being spread against. So you get purity, you eliminate currency risk and you just isolate outside of a credit component to the interest rate. And so you don't have to worry about a default concern.
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