I always see people in r/personalfinance asking where to put down payment savings and the conventional advice is a high yield savings account. But what about bonds near maturity?
The main risks as I see them are 1) default; and 2) interest rate changes within that maturity window. Correct?
But for #2, wouldn't the market already have a very good idea what the interest rate change will be, say, in a 3-4 month window. So that risk is already priced in.
It just seems like these days laddering 3-4 month bonds is a better idea than online savings.
But I'd love to be corrected.
Submitted September 25, 2017 at 08:34AM by HugoSwBoss http://ift.tt/2xqlnTZ
