How Well Do Nontraditional Bond Funds Serve Investors?
While good defenders against interest-rate risk, nontraditional bond funds generally take on more credit risk than core bond funds and carry higher expense ratios, too.
Christine Benz: Hi, I'm Christine Benz for Morningstar.com. Nontraditional bond funds proliferated earlier this decade amid concerns over rising interest rates. Now that some of these funds have amassed significant histories, it's a good time to check in to see how well they've served investors. Joining me to discuss that topic are two of Morningstar's senior fixed income researchers, Miriam Sjoblom and Eric Jacobson.
Miriam and Eric, thank you so much for being here.