ChatterBank11 mins ago
yield
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how come some time triple A bonds earn more yield than double A bonds
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For more on marking an answer as the "Best Answer", please visit our FAQ.Esentially AAA bonds are the safest and offer the least return and AA bonds are not quite so safe and should offer a bit of a keener return. The truth is these two classes are very closely matched. If the AAA bond is a treasury bond it will be governed by interest rates so may have a low moment and would be unwise to sell it then (if able to). The AA may be a Corporate Bond not governed completely by interest rates and may just be having a good week! It's a bit of a how long is a piece of string question. Perhaps look at an Industrial long term bond FUND for a decent yield (3-5 years) bye when the DOW is down and SIT ON IT. This will not be a AAA but is a very sound move. A decent yield a decent index (The DOW) and a decent timescale.