How safe are Freddie Mac bonds? Can U lose $ on bonds??

Question

How safe are Freddie Mac bonds? Can U lose $ on bonds??

Answer 1

Bonds are generally considered some of the safest investments out there as far as capital preservation.  The pitfall is that the yields are so low that they may not keep up with inflation.   Invest too heavily in bonds over the long term and you may end up finding that, yea you still have all your money, but it's no longer worth anything.

Answer 2

you normally don't lose money on bonds. Even if you do, it means the company failed and is paying back its debts. Because you have bonds,  your first in line to get your money back.

freddie mac bonds, im not too sure. Haven't heard of that company.

Answer 3

The US government probably will guarantee these bonds in the near future.  And if you trust the US Federal government to pay for its obligations.  Then you can say that these bonds are safe.

Of course, US government revenues come from US taxpayers.  And if at some future time US taxpayers balk at having to pay trillions of dollars of other people's debts.  Then they can elect congressmen and senators who will refuse to pay for these bonds with taxpayer money.  And in that case bond holders may loose a part of their investment.