Corporate Bonds

Posts Tagged ‘history’

Question: Does anyone have a high dividend investment that pays dividends of 9%+ per year with a consistent history?

I like ETFs and corporate bond funds so far but I am open to research anything besides pink sheet investments.

Answer: Canadian Royal Trusts were your" best bet" up until last Halloween when the Finance Minister decided to change the laws about how they were going to be taxed in the future.... right now they are in a state of flux because no one is sure if the changes will take place or the government will be thrown out ( yes! It's that serious to the hundreds of thousands of retired Canadians who had invested in these trusts for the monthly dividends... a personal social security check as it was)
But anyway, the price of these CANROY's is down right now ( because of the uncertainty) ...AND even if the changes come about, they won't take effect until 2011....so if you are just a little bit of a risk taker you can get well over 11% for awhile..
If you want to keep an eye on the situation go to www.investorvillage and log into the CANROYS board ...just loaded with intelligent, serious investors figuring all angles of the situation.
Other than the CANROYS, I think you would have to look into REIT's ..... although personally I went somewhat the other direction into Southern Copper( PCU) that pays a 10% dividend... trusting an individual stock ...
Many of the " country" ETF's have been making well over 10% but no guarantees.

THE BOND BAND LIVE - THE LIVING DAYLIGHTS & HISTORY p.1

Question: The Risk Structure of Interest Rates?

I would really appreciate it. Thank you!!

Answer: The best combination to observe the risk structure is option B: a 30 year Treasury bond and a corporate Aaa bond. The reason for this is simple. A 30 year Treasury bond and a corporate Aaa bond have similar terms so the term structure is constant, therefore, the primary difference is the risk structure. To further explain this answer I'll eliminate the other options.
Option A does not work because they are the same type of security--government securities--so they have the same risk (which, by the way, is virtually zero).
Option C does not work because those bonds of vastly different terms--6 months vs. about 30 years
Option D does not work because those bonds are also of vastly different terms--6 months vs. 7 years
Option E does not work because they are both vastly different terms and they are the same type of security--corporate debt

Therefore, Option B is the correct choice because it compares different types of securities (government vs. corporate) of similar terms (about 30 years).