Not all companies with large dedicated bond portfolios are abandoning them.

"And the life insurance industry has taken on the risk in their bond portfolios."

Met Life has a $25 billion corporate bond portfolio.

The division manages a bond portfolio that had a market value of about $21 billion last June.

Right now, Chrysler's bond portfolio has an average maturity of about 17 years.

Investors in bond portfolios have had little to complain about.

Its bond portfolio thus did not fall in value as much as at other banks.

And if interest rates move higher, this would lower the value of bond portfolios.

However, the value of the fund's bond portfolio has declined by only 18 percent in the same period.

"Don't try to get cute with a bond portfolio," he added.