Rekenthaler Report

Bonds Are Riskier Than You Think

John Rekenthaler

I Guarantee It
Bonds certainly sound safer than stocks. They are required to pay their stated interest rates, whereas stocks can cut their dividends at any time—if they pay dividends in the first place. Bonds, of course, also stand higher on the credit ladder. Should the organization go under, bondholders will likely receive at least a partial payment, sometimes even better than that. Stock owners will get nothing.