Thread Rating:
  • 0 Vote(s) - 0 Average
  • 1
  • 2
  • 3
  • 4
  • 5
Any bond fund recommendations?
#11
(12-17-2019, 06:21 PM)Otter Wrote: Online brokerages make it pretty easy these days to search/buy individual bonds or CDs and customize what you are looking for (term, callability, yield, etc). Schwab's "Find Bonds & Fixed Income" option under the Trade tab is super easy. Ameritrade's Bond Wizard is also easy to use.

All of my significant funds are in Vanguard.  They never make anything quite as simple as TDA, but the search function seems adequate.  When I get a minute I'll attempt to copy a listing onto this thread so I can ask a few questions.  I definitely see what you guys are saying about corporate not being worth the bother right now, but just for practice I may still buy one that expires in a few years so I can observe the mechanics and track it.  I'm not planning to be a bond trader, but things change and I desire an understanding to exit if that just makes sense some year.  I'll likely just stick to what I understand for trading.  Equities work more than fine for that "bucket".  Callable bonds sound like what I want.
Reply
#12
You might also want to look at preferred shares. Basically just like bonds. Callable at $25 per share and paying you interest every quarter.
Reply
#13
(12-17-2019, 08:26 PM)ChadR Wrote: You might also want to look at preferred shares.  Basically just like bonds.  Callable at $25 per share and paying you interest every quarter.

Yes I should do that Chad.  I own some high yield closed end funds but they will surely be volatile when the market gets choppy.  Some preferred shares would make sense.
Reply
#14
(12-17-2019, 06:51 PM)fenders53 Wrote: Callable bonds sound like what I want.

I think you mean non-callable. 
Callable means that the issuer can call them back, usually anytime after a defined date. That is generally bad news for the investor since they will only call the bond back IF they can get cheaper money elsewhere, meaning that the interest rates are probably lower than they were at the time of the bond issue. So then you would be looking to park your money again somewhere, probably at a lower rate. 

Callable also brings in an added level of risk whenever you purchase the bond for a premium. And I think you will find that the very large majority of corporate bonds out there are currently trading at a premium.
Reply
#15
(12-18-2019, 12:46 AM)crimsonghost747 Wrote:
(12-17-2019, 06:51 PM)fenders53 Wrote: Callable bonds sound like what I want.

I think you mean non-callable. 
Callable means that the issuer can call them back, usually anytime after a defined date. That is generally bad news for the investor since they will only call the bond back IF they can get cheaper money elsewhere, meaning that the interest rates are probably lower than they were at the time of the bond issue. So then you would be looking to park your money again somewhere, probably at a lower rate. 

Callable also brings in an added level of risk whenever you purchase the bond for a premium. And I think you will find that the very large majority of corporate bonds out there are currently trading at a premium.
Yes I meant non-callable, and it would almost have to be a new issue to not trade at a significant premium.  .
Reply




Users browsing this thread: 1 Guest(s)