Last fall, I wrote the article, “4 Ways to Find ‘Real’ Yields in a Low Interest-Rate Environment.” Given the difficulty of finding inflation-adjusted positive returns in high-quality, shorter-dated bonds, I presented the following four ways to find real yields. Extend…
If you are worried about a bubble in junk bonds, you are likely not alone. As the chart below shows, with the “BofA Merrill Lynch US High Yield Master II Effective Yield” hanging out in the sub-6% region, it is…
Here are a few things that make Fidelity bond trading great: 1. Commissions – If you are willing to trade Treasuries online, there are no commissions.
In recent weeks, numerous companies have issued brand new debt with maturities ranging from just a couple of years all the way out to 30 years. For readers who don’t have easy access to up-to-date bond information, I’d like to…
When public companies are taken private, shareholders and bondholders are often treated very differently. It is not uncommon for shareholders to cash out at a healthy premium to the price of the stock just prior to the buyout announcement.
Investors should familiarize themselves with the tax implications of making such an investment. Accrued interest, bond premium amortization, and market discount are a good place to start.
Whenever I buy an individual bond, I do so with the intent to hold that bond to maturity. Sometimes, however, for various reasons, I decide to sell a bond prior to maturity. Here’s one reason why.
There was once a time when creating a diversified portfolio of individual bonds was an impossible endeavor for many retail investors.
Currently yielding 6.70% and 6.93%.
Here’s what you need to know about this unique opportunity.