Why did the the three major credit agencies overate all those mortgage backed securities? There are two lines of thinking… […]
corporate bonds
What Happens When a Corporate Bond Defaults?
Corporate bonds have a much higher yield than treasury securities. The higher interest of course is to compensate for the default risk corporate bonds possess. […]
Should Apple behave like a hedge fund?
Apple (AAPL) , Google (GOOG), and Microsoft (MSFT) all hold lots of cash: respectively $100 billion, $45 billion, and $60 billion. These three companies manage $205 billion in cash. That is pretty close to how much… […]
Are Junk Bonds Expensive? An Investor’s and Trader’s View
Here we will present two different views on Junk bonds. One which argues that by the correct historical measure high yield bonds are expensive. The other which makes the case that the extra yield on the bonds, more than compensates for the risk…. […]
Investing in Junk Bonds – Part 3
So you’ve learned when to be in the junk bond market and when to be out as well as how to evaluate individual junk bonds and have decided to take the plunge and pick out an individual junk bond or two. How does one actually do this? […]
How to Invest in Junk Bonds – Part 2
First, caveats are in order. Picking bonds, just like picking individual stocks, is not for the faint of heart or suitable anyone that does not understand accounting, financial statement analysis, and the basics of finance. It also probably represents an…. […]
Should You Trust the Rating Agencies?
Is the recent criticism of rating agencies fair? Do the rating agencies do a poor job rating debt securities?….. […]
Investing in Junk Bonds – Part 1
Especially in an environment of historically low interest rates (1% on a 5 year CD anyone?), many investors are tempted to chase yield in any corner they can find it. If you have been accustomed to receiving 4 to 6% interest on a long term CD or bond and…. […]
Bond Prices – Where to Find Bond Prices and Quotes
There are several places where you can find free delayed bond prices. Generally speaking, the prices are delayed by 5 – 15 minutes. As most […]
Bond Credit Ratings – What They are and How they Work
Bond credit ratings are the equivalent to an individual’s credit score and are designed to guage the risk that a bondholder will not receive a portion or […]