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For lending to these riskier businesses, investors are compensated with higher yields than investment-grade bonds offer. Normally we wouldn’t recommend a fund with a duration of 1.5 for liquid assets, but we’ll make an exception for FPA New Income (FPNIX, 1.65%). This is because of the fund’s superb record of risk management and capital preservation over the years. Steered by Tom Atteberry since 2004 , New Income has never lost money in any year since its inception in 1984. Fixed-income holdings include asset-backed securities such as auto, credit card and equipment receivables, residential securities, and short-term Treasuries. While no investment is ever entirely safe, savings accounts and Treasury https://investmentalk.com/ securities are the most secure places to invest, though their returns will be relatively low.