For those investors who are concerned about current interest rate levels -- acknowledging that interest rates are at levels that we have not seen in many years -- my recommendation would be to stay with intermediate term bonds
They invest in short to intermediate term bonds
whose investment returns are then protected by investment contracts that help stabilize fund returns and value over time.
During the past 22 years, SCM has built a performance track record in intermediate term bonds
that is among the best in the nation, consistently outperforming the Lehman benchmarks and competitors over long periods.
Deerfield has $50 million of VRDBs outstanding, of which, $20 million are intermediate term bonds
and due in 2014.
However, stable value has historically offered considerably higher returns and are comparable to high-quality, intermediate term bonds
, but with lower volatility.
2005 Recommendations for Investors FAVOR A CONSERVATIVE APPROACH * Diversify * Buy high quality intermediate term bonds
* Dividend paying stocks are attractive * Invest in VALUE * BEAR Insurance is worthwhile -Non-correlated securities -Deep bargain issues
In light of current market conditions, it now appears unlikely that the long-term bonds will be issued in the near future, while there is a somewhat higher probability that the intermediate term bonds
may be issued in the near future.