Head of Vanguard Fixed Income Group since 1981. In investment management since 1981. With Vanguard Fixed Income Group since 1992. In addition, the fund manager does not make judgement calls on the direction of the U.S. Index. The possibility that bond fund prices overall will decline over short or even extended periods.
Bond markets tend to move in cycles, with periods when prices rise and other periods when they fall.
Interest Rate Risk. The possibility that a bond fund will decline in value because of an increase in interest rates. The possibility that a fixed-income fund's dividends will decline as a result of falling overall interest rates. The possibility that a bond issuer will fail to repay interest and principal in a timely manner. Also called a default risk.