Bond Fund Investors' Challenge

Andrew Leckey, Tribune Media Services columnist, addresses the challenge for bond and bond fund investors in the face of rising interest rates. Leckey notes that "Short-term interest rates have notched up 10 times since June of last year, directed by the steady hand of the Federal Reserve." and adds "But longer-term rates have hardly budged at all. They're definitely overdue." Greg Habeeb, lead portfolio manager for Calvert Short Duration Income Fund, concurs, saying, "...stay away from long-maturity bonds, because it is just a matter of time before they are hit pretty substantially as long-term rates go up." Leckey also reports on the interest rate outlook from Mario DeRose, chief fixed-income strategist for Edward Jones, and spotlights five top-performing short-term taxable bond funds and five top short-term municipal bond funds leading in total return over the past 12 months in this piece in the Hartford Courant.

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(May '04-Jun '05)