Posts Tagged ‘banking’
Corporate Bonds Coupon
May 4th, 2006
Question: If I buy a bond trading at 80 that matures in 1 year , can I yield 20 % plus the coupon rate ?
I know very little about bond trading and just started researching two weeks ago.
I have seen Corporate Bonds on Etrade that have ratings of A- , A or AA- that have this scenario . Some of them have a negative outlook because of the current economic situation . Is a fixed yield of 25 % worth the default risks ? Is it a normal situation to sell them at these discounts ?
Answer: it is probably not a default risk in the historical sense, but rather the refinancing risk. keep in mine that ratings are worth squat - so your basis for risk assessment is flawed. judge your outlook and cash flow projections, not ratings. for example, GE is AAA and by the skin of its teeth barely avoided a refinancing crisis as it received the FDIC guarantee for debt it must refi.
Could be a good deal, but do your own homework, not rating agency b.s.
What Are Municipal Bonds? - Profit From Municipal Bonds
Posted in Corporate Bond Investing | 
Tags: banking, corporate bonds coupon, corporate bonds coupon frequency, finance, financial, money, mortgage | 
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Corporate Bonds Safe
April 23rd, 2005
Question: which is likely to give you a greater rate of return: a checking deposit at a bank or the purchase of a ?
corporate bond? why?
which would be safer: putting all of your personal saving into Fly by night stock, or putting all of your personal saving into a mutual fund that has some fly by night stock in its portfolio? why?
defineand provide and example for:
debt finance
equity finance
Answer: i use a mutual fund--among other reasons it has a professional money manager who makes the decisions as to what to buy or sell
CMA High Income Bond Portfolio, Corporate Bonds, Coupons,Chicago
Posted in Corporate Bonds 101 |
Tags: are corporate bonds safe, banking, bond, corporate bonds safe, finance, investing, money |
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