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To: Tradelite who wrote (126814)10/2/2001 12:41:39 PM
From: GraceZ  Read Replies (2) | Respond to of 436258
 
, much money is flowing into government-backed securities.


People are simply chasing yield with these GNMA funds because money market rates and CD rates are so low. It's my experience that chasing yield usually results in a loss in principle at some point, when rates start to rise you can't get out fast enough.