Second, bonds offer return of capital when held until maturity. (Corporate bonds are not completely withoutrisk, so be sure to monitor the fiscal health of the issuer.) Finally, bonds have historically had low correlations with stocks. (When stock prices zig, bond prices often zag.) Thus, even in the current low-yield environment, bonds should notbe ignored.
Well, for one, the products are still expensive, time-consuming and labor-intensive to create and without a defined market to sell into may notbe worth the risk.