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

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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...]

Income Investing – Looking Beyond Stocks and Bonds

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In the first three parts of my series on income investing, I discussed what exactly income investing is, how common stocks and traditional bonds can play a role in the income investor’s portfolio, and certain things on the macro front that … [Read more...]

Bonds – A Necessary Component of the Income Investor’s Portfolio

income-investing

In the second part of my series on income investing, I discussed the role that common stocks can play in an income investor’s portfolio. But stocks aren’t the only game in town. Bonds are also an important component of any diversified income-focused … [Read more...]

Why The Recent Drop In Interest Rates May Not Be What You Think

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Last Wednesday I finished a three-part series on how one might dissect longer-term bond interest rates to try and understand what the financial markets are trying to tell us about what is going on. These three posts dealt with the real rate of … [Read more...]

The Role Stocks Play in an Income Investor’s Portfolio

Fixed-Income

In my recent article, “Income Investing – What Exactly Is It?” I noted that income investing “involves focusing your efforts on creating diversified streams of income with as little risk to principal as you feel is possible in order to sustain your … [Read more...]

Bonds vs. Bond Mutual Funds

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So What’s Better? Investing in individual Bonds directly or through a Bond Mutual Fund? The short answer is “it depends” and there really is no single correct answer. There are potential benefits and drawbacks to each, and ultimately the decision … [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

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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

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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...]