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Bonds Explained Simply | Presentation and Q&A with Michael Lebowitz

Wealthion - Be Financially Resilient

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Is Callable Better Than Non Callable?

Bond funds and ETFs have a purpose. I may run a bond fund that's a 10 year corporate bond fund investment grade. What that means is that the maturities of the bonds I buy are between probably eight and 12 years. And they have to be triple be rated or better. Muni default rates tend to be much lower than corporate default rates. There are many types of munis based on where the revenue is going to come from. It's complicated in its own way, just like mortgages are complicated. But because of the tax benefit, there is plenty of opportunity there too.

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