Bonds have traditionally always had a place in retirement portfolios because they provide a reliably steady source of income while securing the invested capital with minimal risk. However, many retirees don’t fully take advantage of the relative … [Read more...]
Understanding Investment Risks in Relation to Returns Before You Invest
Making an investment is inherently risky, and smart investors are wise enough to avoid investments proposals offering/guaranteeing zero risks. Low-risk investments typically generate low returns and high-risk investments often bring relatively higher … [Read more...]
$2 Trillion: Bond Market Conquered By iPhone Maker, Top U.S. Corps
“They are asset managers in their own right.” This is opinion of Ramaswamy Variankaval. He is the head of the corporate finance advisory division at JPMorgan. Speaking to the Financial Times (FT), Variankaval conveys that technology giants and other … [Read more...]
Insights on Trading Bonds as Binary Options in a Market Fixated on Stocks
Bonds and trading don't often appear in the same sentence in the financial markets. You'll have better luck talking about bond investment than talking about bonds trading. Yet, the fact remains that it is very possible to trade bonds and smart … [Read more...]
How to Buy Series EE Savings Bonds
There are several advantages associates with investing/purchasing bonds. For example, you will have a more secure cash flow and prevent/reduce most of the risks from direct trading in the stock market. There are different kinds of bonds to choose … [Read more...]
A Guide to Buying United States Savings Bonds
United States savings bonds are debt securities that the Department of Treasury has issued as a means to pay for the government’s debts. They are believed to be among the safest methods of investing because they are completely backed by the U.S. … [Read more...]
Financial Assets Guide: What Are Stocks and Bonds?
Stocks and bonds are financial assets that can yield a profitable return if they are purchased and sold at the right time. To some extent, they are alternatives for each other, and they both have different characteristics. Info on Bonds A bond is … [Read more...]
Pandora Media Inc (NYSE:P) Reports on Q3 Loss
Pandora Media Inc saw a fall of over 30 percent in its stock price this week. The crash came after the company released its report on its third quarter earnings. The media giant reported on a $85.9 million loss in the last quarter. However, though … [Read more...]
The Basics of Bond Investing
Growing up as a child, I vaguely remember being gifted paper U.S. Savings Bonds by my great uncle. This was my introduction to bond investing. I didn’t know exactly what they were at the time, but I was told that when we put a bond in a safe … [Read more...]
Why You Are Overweighted in Bonds
The fundamental concept behind fixed income investing, especially for retirement investors, is that you are trying to preserve capital while generating enough interest and dividends to enhance your income. The strategy is also designed to allow you … [Read more...]
The Yield Curve: What it is and How it Works
The yield curve is a graph which plots time (from shortest to longest maturity date) on the horizontal access, and yield on the vertical access. It is used to show the relationship between yield and maturity. Yield curves work best when plotting … [Read more...]
How the Federal Reserve Influences Interest Rates
One of the hottest topics in financial news this year concerns the Federal Reserve and Monetary Policy. Increasingly, we are hearing statements that go something like this: The Federal Reserve is going to raise interest rates this year - probably as … [Read more...]
Are Bonds Riskier Than Stocks?
It is a simple fact that bonds today, given the low interest rate environment, are being priced with historically low yields. Further, with the threat of a higher rate environment looming, investors are fearful that buying a bond today won’t be as … [Read more...]
Asset Allocation – How Much of Your Portfolio Should Be In Bonds?
One of the most critical aspects of portfolio management is Asset allocation . It has been often researched and opined that the types of assets one invests in is more important for long-term total return than specific securities selected. Of course … [Read more...]
Master Limited Partnerships
A Master limited partnership (MLP) is a publicly traded entity that combines the tax benefits of a limited partnership with the liquidity of a publicly traded company. MLPs are listed on the major U.S. stock exchanges, but because they are … [Read more...]
Portfolio Diversification
Portfolio diversification is a risk management technique by which investors minimize their portfolio risk by combining a variety of assets. Diversification tries to smooth out unsystematic risk events in a portfolio, and moderate the short-term … [Read more...]
Utility Bonds
A utility bond is a type of municipal bond that is issued to finance the construction of public utility projects, such as water systems, sewer systems, electrical plants and various public projects. The issuer of a utility bond receives a cash … [Read more...]
Auction Rate Securities – Meaning and Risks
Auction rate securities are debt instruments in which the interest rate is reset on a recurring basis through a Dutch auction. Auction rate securities help issuers diversify their funding structure by allowing them to pay at variable, short-term … [Read more...]
Interest Rate Swap – Definition and Example
An interest rate swap is a financial derivative instrument in which two parties agree to exchange interest rate cash flows, based on a specified notional amount, over an agreed period of time. Interest rate swaps provide a way for businesses to limit … [Read more...]
Debentures – Features, Types and Benefits
Debentures are a type of debt instrument that are not secured by specific property or collateral, but are backed by the full faith and credit of the issuer. If the issuer were to liquidate, the debenture holder is considered a general creditor, and … [Read more...]