Your new portfolio would look like the composition of the
Lehman Brothers U.S. Aggregate Index,4 with 40 percent in mortgage-
backed and other so-called securitized securities, 25 percent
in Treasury securities, almost 20 percent in investment-grade corporate
bonds, and 15 percent in other government-related securities,
including the so-called agency bonds issued by the likes of
Fannie Mae. If you decreased the Treasury portion and just
moved the money into corporate bonds, for example, your risk
and potential return would rise a little.
Lehman Brothers U.S. Aggregate Index,4 with 40 percent in mortgage-
backed and other so-called securitized securities, 25 percent
in Treasury securities, almost 20 percent in investment-grade corporate
bonds, and 15 percent in other government-related securities,
including the so-called agency bonds issued by the likes of
Fannie Mae. If you decreased the Treasury portion and just
moved the money into corporate bonds, for example, your risk
and potential return would rise a little.
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