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Selected category: Bonds

Negative TIPS Yield Shows Market Expects Increase in Inflation Image Image courtesy of jscreationzs at FreeDigitalPhotos.net

Negative TIPS Yield Shows Market Expects Increase in Inflation

Treasury Inflation Protected Securities (TIPS) auctioned on April 21, 2010 at a negative 0.18%. Why would an investor by a bond at a negative yield and what does it mean?

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Unconventional times require unconventional thought. Breaking from the rigidity of traditional bond funds, some investment houses have created funds that are literally unconventional bond funds.

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Major Banks Are Offering Structured Products Paying 8% a Year to Their Customers, Is it Safe?

Citibank, Bank of America, JP Morgan, Morgan Stanley and Goldman Sachs are creating interesting structured instruments for their subsidiaries' brokerage customers. These products offer a fixed return above those available in even the best savings and CD accounts. Is the environment still dangerous for banks and are these products too good to be true?

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The Attraction of Dividend Stocks to Traditional Bond Investors Image Image courtesy of hyena reality at FreeDigitalPhotos.net

The Attraction of Dividend Stocks to Traditional Bond Investors

At this point in my young adult life I can tell my children (when and/if they come to exist) that when I started driving gas was $0.98 a gallon, Sudan was one nation and that dividend stocks attracted bond investors. With the decimation of 2008 and early 2009 behind us, the economy is in recovery mode. We have all heard that, but it is.

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Consumer Price Index (CPI-U) Image Image courtesy of Stuart Miles at FreeDigitalPhotos.net

Consumer Price Index (CPI-U)

The CPI-U or Consumer Price Index for Urban Wage Earners and Clerical Workers is published monthly by the Bureau of Labor Statistics of the U.S. Department of Labor. It is a measure of the average change in consumer prices over time for a fixed market basket of goods and services, including food, clothing, shelter, fuels, transportation, charges for doctors' and dentists' services, and drugs.

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Commercial Paper Vehicles Image Image courtesy of cooldesign at FreeDigitalPhotos.net

Commercial Paper Vehicles

Commercial paper is a company's senior, unsecured debt. Several companies offer programs through which depositors can maintain commercial paper accounts. The companies that offer these accounts find them to be effective ways to borrow at very low costs of capital directly from depositors. Most issuers claim that these accounts are fully negotiable and have instituted banking features (such as ATM access and check writing) as well as competitive rates.

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Why Invest In a Laddered Bond Portfolio Image Image courtesy of Stuart Miles at FreeDigitalPhotos.net

Why Invest In a Laddered Bond Portfolio

A laddered bond portfolio allows investors to have bonds spread all along the yield curve so they constantly have bonds maturing, enabling them capture the highest yields available.

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Laddered Bond Portfolios versus Bond Funds Image Image courtesy of KROMKRATHOG at FreeDigitalPhotos.net

Laddered Bond Portfolios versus Bond Funds

The first question that generally comes to mind is why go to all this trouble to put together a bond portfolio? Why not invest in a bond fund? Good questions both, and a do-it-yourself bond portfolio is not necessarily better or worse than a bond fund. It has more to do with an individuals objectives, risk tolerance, etc.

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Yield-to-maturity versus Current Yield Image Image courtesy of graur razvan ionut at FreeDigitalPhotos.net

Yield-to-maturity versus Current Yield

Investors new to bonds often wonder what the difference is between yield to maturity and current yield.

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Bonds for newbies Image Image courtesy of nirots at FreeDigitalPhotos.net

Bonds for newbies

A newbie purchasing bonds for the first time can be a little bit like the coffee virgin at Starbucks ordering his first ever specialty drink.

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Three Popular Bond Investment Strategies Image Image courtesy of graur razvan ionut at FreeDigitalPhotos.net

Three Popular Bond Investment Strategies

This article examines three popular bond investment strategies - the barbell, the bullet and the ladder.

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Investing in Bond Funds versus Bonds Image Image courtesy of Stuart Miles at FreeDigitalPhotos.net

Investing in Bond Funds versus Bonds

Bond funds are mutual funds that invest in bonds. The funds can invest in government or corporate bonds of short, medium, or long-term maturity. This article explores investing in bond funds versus individual bonds.

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Bond Fund Fees Image Image courtesy of Stuart Miles at FreeDigitalPhotos.net

Bond Fund Fees

There are a lot of fees to watch out for and to understand when you are considering investing in a bond fund (these apply to any mutual fund).

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Bearer Bonds Image Image courtesy of Stuart Miles at FreeDigitalPhotos.net

Bearer Bonds

Bearer bonds, also known as coupon bonds are bonds in which the physical certificate is held by the owner rather than being a registered security like bonds are today.

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Bond Basics Image Image courtesy of Stuart Miles at FreeDigitalPhotos.net

Bond Basics

This article will give you the ability to go out and purchase a bond on your own.

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