Some will argue that they hold individual bonds, not a bond fund. The price drop is temporary, because you get your capital back at maturity. That’s true, as long as the bond makes it to maturity. Some never do. The most recent high profile example would be Credit Suisse’s AT1 bonds, which became worthless in 2023. it has been a terrible few years ever since the Fed started hiking rates in 2022, and it isn’t over. On 16 September, the Fed raised rates again by 0.25 percentage points, to 3.75% to 4%. That was its first hike since 2023.Most investors don’t hold only short-term bonds. Longer bonds pay higher yields, and that’s what attracts them. Many of the popular bond funds are intermediate duration, holding bonds that mature in five to ten years. When longer-term yields rise, these funds