Two Moderately-Aggressive Asset Allocations For Income-Focused Investors

asset allocation

In last week’s article, “A Conservative Asset Allocation For Income-Focused Investors,” I noted that the process of managing cash flows starts with the following calculations: 1. Calculate the annual amount of money you need to live. 2. Subtract … [Read more...]

A Closer Look at Zero-Coupon Bonds

zero coupon bonds

It has been a long time since I searched the inventory of available zero-coupon bonds. But given the dearth of investment articles on zero-coupon bond opportunities, I thought I’d write a bit about what I discovered when recently searching for … [Read more...]

“The Great Experiment” And What It Means To Bond Investors


This is a tough time to be investing in fixed-income securities. The reason for this is that the Federal Reserve has taken the financial markets into places it has never seen before. Thus, everybody is on “new” ground and everyone is just guessing … [Read more...]

Does interest rate renormalization = corporate default renormalization?

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The Wall Street Journal quotes Christina Padgett, head of leveraged finance research at Moody's Investors Service Who said: "Leverage is getting back to where it was pre-crisis. After the crisis, companies were behaving more conservatively and … [Read more...]

Evaluating Credit Market Risk vs. Return


Steve Martin once said, “A day without sunshine is like, you know, night.” Can you think of anything more obvious? Here’s one: when you make a loan, it’s important to get your money back. Granted, it’s not as funny, but it’s equally … [Read more...]

This 6% Yielding Security is Worth a Look


Duke Energy is the largest electric power holding company in the United States, supplying roughly 7.7 million customers across an area of more than 100,000 square miles with either electricity or gas. The company’s electric customers can be found in … [Read more...]

AMC Networks: “Breaking Bad” Bonds

Breaking Bad

In December 2012 AMC Networks (AMCX) (which spun off from Cablevision Systems (CVC)) issued $600M in new corporate junk bonds due in 2022. The bonds have a 4.75% coupon and are continuously callable beginnning December 2017. Currently the bonds … [Read more...]

Don’t Get Ripped Off by This Bond Market Shenanigan

Bond Market Schemes

In his book, The Big Short, Michael Lewis describes in the following way how Danny, the head trader for Steve Eisman, approached trades that seemed perfect. “When a Wall Street firm helped him to get into a trade that seemed perfect in every way, … [Read more...]

D.R. Horton Issues New 5.75% Senior Bonds


Investing in housing or securities related to housing seems to be all the rage. If you want to add exposure to housing but prefer to avoid the buy-to-rent craze sweeping the nation and want to stay away from housing-related common stocks, you might … [Read more...]