Originally Posted by coop86
It does seem like a better place to put money than a savings account, but I'm pretty sure you're in for some trouble if the Fed raises rates. I'm surprised some investment bank isn't buying these up by the 1,000s and trying to sell them like MBSs.
Apparently some private portfolio managers have been buying these by the millions (or so LC claims). I'm sure it's only a matter of time before somebody comes up with a way to securitize them.
If you're solely in it for the income, rising interest rates shouldn't hurt too badly, but it will make reselling of notes more difficult, lowering yield if you're actively trading them.