Archive for the ‘Corporate Bond Investing’ Category
Corporate Bonds Ratings
August 10th, 2009
Question: Need help with "bond lingo"?
I am looking into Corporate Bonds as an investment, but I cannot make heads nor tales of the Scottrade page with the bond information.
I understand the basics behind how bonds work, but I cannot make sense of the acronyms and numbers.
Could someone please decipher this example for me?
QTY:229
Min: 10
Incr/MBR: 1/1
Ratings: Baa3/BBB-
Issue: Viacom Inc.
Call Information: Non callable, make whole calls, NYBE, CBS, VIACOM INTERNATIONAL INC.
Coupon: 4.625
Maturity: 5-15-2018
Price: 96.500
YTM: 5.144
YTW: Mat
I don't really want this particular bonds, it's just an example. If someone could explain all this to me, I would be very greatful.
FYI, I am a newbie at bonds and fixed-income investments, so please use plain english. 
Answer: It is a Viacom bond. It matures in 2018. It sells at 96.5 per 100 or $965 per bond. The minimum quantity is 10 bonds which sort of surprises me. Normally it is 1 bond. So to buy the minimum you will have to pay $9650. They are rated BBB-. Lower than investment grade. They have 229 bonds available. The coupon rate is 4.625% so you will be paid 46.25 per bond per year. It is paid twice a year. It does not say when the payment dates are. Now when you buy bonds you also have to pay for the accrued interest that has not yet been paid. Now you need to be aware that bond ratings are somewhat suspect these days. They tend to be inflated as many folks found out who bought mortgage bonds. They might be inflated a lot.
Reviewing the M&G Corporate Bond fund
Posted in Corporate Bond Investing | 
Tags: business, corporate bonds ratings, finance, investing, investment grade corporate bonds ratings, news, ratings | 
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Corporate Bonds Quotes
June 20th, 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