Most people have a chunk of money that they define as “safe.” If that safe money is earning 0%, say in a money market account, they start looking for a way to “stretch their yield.” In the hope of avoiding risk, their search often leads to bonds. However, I see people make the mistake of assuming that bond funds come with zero risk.

At the New York Times, I discuss that as promised bond yields increase, so do the risks, meaning your “safe” money might be more exposed than you realize.

The False Safety of Bonds (New York Times)