..many people do not understand - Bonds are not Cash. They just look at the 5% return and think its fixed income (with little risk)
..true, with expectations of lower rates to come, there is good chance bonds will rise (inverse relationship with rates); HOWEVER, longer duration bond yields have been stickier due to a rise in risk premium.
..there is a chance too that longer duration bonds may receive poor acceptance resulting in wider buy/sell spreads, difficult to redeem and reduced value if credit rating falls or higher inflation ahead causes long term rates to go higher.
..you get redemption risk when you can't easily sell an asset because there is little appetite unless you are prepared to sell for a larger loss. The risk for a 5% return is not commensurating, at least with equities, the returns can be higher.
