Category Archives: Corporate Bonds
Corporate bond interest rates today compared with the historical value of these bonds may paint a surprising picture for some investors. In 2007 the average interest rates for a corporate bond that received an AAA rating from Moody’s was between 5.23% and 5.99% through the year. In 2008 the AAA average rate was from 5.29% to 5.89%
Investing in corporate bonds versus government bonds and municipal bonds is a topic that many investors struggle with. Both types of bonds have benefits and drawbacks, and each may be right for some investors but completely wrong for others. All bonds are rated according to the credit rating of the company
Investors spend a lot of time looking for the best short term corporate bonds, but what makes a bond the best? This will depend on the individual investor and the specific goals desired. Long term corporate bonds tie up capital for extended periods and this is one reason why investors may choose shorter term options instead.
1. HCP Inc., symbol HCP- One of the top investment grade corporate bonds according to many financial experts the current HCP Inc. senior unsecured note matures in 2019 and offers a rate on the coupon of 3.75%. This bond is callable and it has a rating from Moody’s that is Baa and a S&P rating of BBB.
As an investor can you buy corporate bonds directly? The answer is yes if you know what steps to follow and how to do research. The first step that you need to follow is to locate possible companies and bonds. This research will help you determine what options are available in this sector and help you do thorough research.
When it comes to the 2012 corporate bond offerings many investors compare US companies versus international choices. International companies may offer a more attractive rate in some cases but there may be differences in currencies and trading regulations. Foreign corporate bonds may face a higher risk of political instability
Finding the best corporate bonds to buy in 2012 may seem like a daunting task but it does not have to be. There are many quality bonds in this category to choose from no matter what your investing goals may be. One company that investors are interested in is Gilead Sciences, symbol GILD.
1. Current Interest Rates- Corporate bond prices are affected by the current interest rates. If the interest rates go up then the price of the bond will fall, and if the interest rates drop then the price of the bond will increase. The current interest rate depends on the economic situation as well as other factors.
What are the best high yield corporate bond funds? There are many of these funds to choose from, and each will have specific risks along with the higher yields. One of the top choices for many investors in this sector is the Vanguard High Yield Corporate Fund, symbol VWEHX, and this fund is under the management of Michael Hong.
The AAA corporate bonds list is much shorter today than it was even 15-20 years ago. Now there are currently only four bonds from US companies in this category that have the highest possible rating, and the credit rating of the USA has been lowered below AAA for the first time ever.
Corporate bond yields will depend in some part on the ratings of the bond. Investors who choose this type of bond will compare a risk to reward ratio, and bonds which have a lower credit rating will usually offer higher yields to entice investors to take the risks involved. Investing in corporate bonds involves more risk than many municipal bond investments
Who are the best performers in the corporate bond market over the last decade? There are many of these bonds on the market but not all of them perform well or offer high yields. Each investor will have specific criteria that is used to determine the best corporate bonds for their circumstances and situation, but one factor that is always evaluated is past performance.
If you invest in corporate bonds for sale how can you hedge the risks? Unlike municipal bonds, the corporate versions often carry higher risks than investing in municipal entities but there are some ways that you can hedge against these risks. There is more than one strategy for doing this and every investor may use various methods.
There are many differences when comparing corporate bond rates and municipal bond rates, and each type of bond may be ideal for some investors but not for others. Corporate bonds are issued by a company while municipal bonds are issued by a city, state, federal government, or other municipal authority.
Zero coupon treasury bonds are considered an excellent investment by many investors but how have these bonds performed and why are they so popular? Zero coupon bonds have a discounted purchase price and these securities do not pay interest payments before the maturity date of the bond.
What should you pay attention to with corporate bond quotes? For many investors the first thing that is noticed with one of these quotes is the trading price but there are other considerations that need to be examined as well. The type of bond is important, because there are short term corporate bonds and those intended for longer time periods.
Are David Lerner Associates bonds a good choice for investors or a big mistake? In close to two decades this investment company has sold a significant amount of bonds, and these cover many types. Investors can find zero coupon municipal bonds, stripped municipal bonds, tax free munis, and others. This investment firm is one of the major players in municipal bonds, and they also offer real estate investment trusts and many fund types as well.
Corporate bonds can offer both drawbacks and advantages to investors, so it is important to evaluate each bond individually to determine whether it is the right choice for your investing goals and portfolio. These bonds can come in different types, including high yield corporate bonds, and they can carry varying degrees of risk. These bonds are not the right choice for everyone, and before any corporate bonds are purchased they should be completely researched and thoroughly evaluated.
High yield corporate bonds are issued by companies who do not normally qualify for investment grade ratings assigned by three major US rating agencies like Fitch, Standard & Poor and Moody’s. Once you buy one of high yield corporate bonds, the issuer guarantees to pay you interest income at regular intervals of time and return your actual principal payment at the end of bond’s maturity period.