Bonds: More Dangerous Than You Think

You may not have noticed it, but bonds haven't done well lately. Since last July, the iShares Barclays 7-10 Year Treasury Bond Fund has lost 2% of its value, while a version that invests in bonds with longer maturities has lost more than 7% (both include interest payments). With the yield on 10-year Treasuries rising from 1.5% last summer to about 2% today, many are realizing for the first time that it's possible to lose money investing in bonds.