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Government backing boosts Ginnie Mae fund

"Investors have fared well in US Treasuries, the top-performing asset class in 2008 with returns approaching 6.8%; but for new money Treasuries seem less compelling given the current paltry yields," says Benjamin Shepard.

In Personal Finance, explains, "To capture higher yields while taking advantage of the security of government debt, we're adding Fidelity Ginnie Mae (FGMNX) to our bond holdings."

"Government debt still makes sense from a safety standpoint, particularly if you're able to realize higher yields. Debt issued by the Government National Mortgage Association (GNMA) is the way to do that.

Continue reading Government backing boosts Ginnie Mae fund

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