Corporate Bonds

Archive for June, 2009

Question: “MAINTAIN OVERWEIGHT ON SOMETHING” what does the phrase mean?

Please help me. Here are some quotes.

- Maintain overweight on the property sector.

- I mean at the overall portfolio level we still recommend that investors maintain overweight in bonds, we’d maintain overweight on corporate credit as a good place to take risk.

http://www.cnbc.com/id/30217584/Be_on_the_Lookout_for_Narrowing_Credit_Spreads

Thanks so much!

Answer: here it explained very well:

http://en.wikipedia.org/wiki/Overweight_%28stock_market%29

Mary Buffett – Warren Buffett and Long-Term Investing

Question: U.S Government bonds VS Corporate Bonds?

Why are the interest rates in these two markets so dramatically different at the present time as opposed to the “spreads” that prevailed two years ago?

Answer: Because of the danger of defaulting by corporations. The risk/ reward is much greater now.

The outlook for Corporate Bond and Gilt funds