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Short Bonds

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Short bonds
Bonds with short (not much time to maturity) current maturities.

Short Bond
A bond with a short current maturity. That is, a short bond is a bond with a comparatively short amount of time before it matures. While there is no hard and fast rule as to how "short" the time is that would make a short bond qualify as such, it usually means that the bond will mature in less than one or two years.


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The fund will invest in highly liquid and publicly traded bonds and short bonds through the swaps market.
Of course, short bonds yield less than those with longer time horizons, since investors don't expect the same kind of reward for lending money for five years as they would for 10.
This was also the case in the period in autumn 2002 when the swap spread widened appreciably, partly due to extensive demand for short bonds in NOK.
 
 
 
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