Market Pulse: Reward-free risks
Special to the Tribune The rapid rise in interest rates this year has exposed the risk in Treasury bond funds that many thought were safe. Yes, the U.S. government is a very highly rated borrower, but there is risk of another kind. Funds like the iShares 20+ Year Treasury (TLT) are almost a guaranteed loser. David Vomund Provided It is hard to make a case for Treasurys. Why? The 10-year Treasury yields 1.52%, yet inflation over the next decade will surely average more. And you have to pay taxes on the interest as well if they are owned outside of an IRA. Those buying a 10-year Treasury today ...