Investment Bonds Knowledge Base
For investment grade bonds the risk of default is low but the return is high! how it is possible? For a investment grade bond (A bond is considered investment grade or IG if its credit rating is BBB- or higher by Standard & Poor's or Baa3 or higher by Moody's) the default rate is very low almost close to 0.1% but still the yield offered on this bonds are high! thus default rate risk cant explain the high bond yield!! what is the reason behind it? The main part of the question is investment grade bonds are paying much more then they should according to the default risk, why is so!!
How do investment bonds Work? Why would someone buy a 2nd or third hand bond from a bondholder when they can lend money to a corporation and get interest money from the bond directly issued to them. And do the terms of the bonds change if let's Corporation A issues a bond to Lender A and Lender A sell these bonds to a different Company.?? Thanks
Which is the better investment : Stocks / bonds or gold? I have over $40,000 in stocks and bonds. I've noticed that in some recent reports that I've received that they are losing value. I am thinking of converting them into gold. Is this a good idea or not, and why? By the way, I am 56 and the funds I am mentioning here represent the bulk of my retirement funds..
Are corporate bonds still a safe investment? Considering what happen to the bond holders of Chrysler & GM, would you still consider corporate bonds to be a safe investment or would you consider other investments to be safer?
How do treasury bonds work and are they a good investment? If I bought a 30yr $50 treasury bond today, what does that mean? What would be the return on my investment? My tax program is offering an option to purchase bonds out of tax refunds and I don't know anything about them. I'm wondering if it is worth putting a couple hundred dollars into some treasury bonds.
Are bonds a good investment in todays volatile market? am realizing that having all my eggs in one basket is not a good idea, and I was thinking about buying bonds regularly on top of what I put in my IRA. What kinds of bonds are a good investment right now and for the long term. Please, only tell me if you have experience and knowledge of this...and of course I'll be talking with a broker as well. Thanks
Are my Vanguard High Yield bonds still a good investment? I don't understand investments at all. I'm told that I'm still making income on these bonds even though "the value of the bonds has decreased." I know I'm ignorant but I don't get how this can be. Can anyone explain this to a nincompoop?
Best place to find investment grade bonds? I'm looking for information on "investment grade" bonds... Where is the best place to buy them ...... can you buy these through Fidility, Vanguard, T.RowePrice, Etc?? Are Muni's the best (highest return and safest)???
Which is the better investment strategy? Premium Bonds or National Lottery? Say I had £2,000 to invest. As part of my portfolio (which includes a range of investment types of differing risk and return), I want a low risk investment, which has the potential for large returns, and I am prepared to take the hit on inflation as a trade-off. Which is the best strategy across the following two criteria: - Best average return from the strategy - Likelihood of making £1million from the strategy Strategy 1: Invest the £2,000 in Premium Bonds. Strategy 2: Invest the £2,000 in a bank account (say 5.5% interest rate) and spend the interest earned each month on National Lotto tickets (about 2 per week).
Bonds and equities -- smart investment for long term? My stockbroker called and told me he's putting my money into bonds and equities. As a layman, I have little knowledge of exactly what this means. My investment goal is the long haul -- I want my money secure for the long run (10-20 years) with slow but steady increases. Is my brokers strategy the correct one for me? With the market as volatile as it is, is this the way to go? Can I assume a yearly interest rate of 2-4%? More? Less? Impossible to say during these troubled times?
What's the best investment, an ISA or premium bonds? I'm thinking about trying to put £3000 away over the next 12 months in regular monthly payments but am not sure what the best option would be. ISAs seem to be touted as the norm for people wanting to save a little extra but the interest rates don't seem that great. Not being a numbers person I'm wondering whether the amount of tax I would save in an ISA would be that much compared to other investments. Any ideas?
Are death bonds a liquid investment? I realize that a policy itself bought and sold would not be a liquid asset. However, if life insuarnce policies are bundled into bonds, I would think that would make them a more liquid asset. Any thoughts?
What Stocks, Mutual Funds, or Bonds should I pick for a mock investment class? I am taking Fin 320 at ISU right now and I am doing some research on what to invest in. I need to maintain a diversified portfolio, obviously a good idea anyway. I was just curious if anyone had any good ideas on what to invest in, including what industries, in this bullish market. I have $1,000,000 to invest and although I know mutual funds will probably have the greatest returns right now, I am looking to learn from this experience and try different ideas while I have the opportunity.
Are I bonds a good investment? I have about $1400 dollars worth of I bonds. I am thinking maybe this is not such a good idea. Will they be worth anything in 15 yrs?
What is the best bond to buy and how I can buy those bonds? I want a conservative bond investment particularly US treasury bills since these are safe and no tax applies to it. Does anyone knows the rate? I also would like to know about company bonds. All in all, which are safest long term term investment firm?
Investment Bond, do i cut and run or hold on? Less than 2 yrs ago i invested £20,000 in an investment bond, the value of the fund at the moment is £15,500 so it is obviously not doing well. Being a novice invester i was wondering whether i should surrender the bond and invest in something more stable or leave it where it is and hope the markets pick up. Would appreciate any advice, thanks
Bonds investment? Is it safe to buy bonds? How do bonds work? If I have money sitting in the account, is it better to put the in bonds or mutual funds?
Are bonds a bad investment right now? I have several different types, from munis to junk, in funds and they all are going down, down, down. Do I ditch them and move back to stocks, cash?
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