I'm with IB. I'm exp with trading equities/options but not bonds - help

[klattermusen]

Hi all

I'm with IB. I'm exp with trading equities/options but not bonds - help

Basically interested in putting my toe into fixed income; stupid questions galore.

Are there many short term company bonds available? I don't mind slightly higher risk but are there decent 8-10% fixed bond options (ire. MSFT? aapl? turkish pastry bbb bonds?) ? thank you

 

[ET180]

8-10% fixed income will require you to take on significant risk.

 

[schizo]

Are there many short term company bonds available? I don't mind slightly higher risk but are there decent 8-10% fixed bond options (ire. MSFT? aapl? turkish pastry bbb bonds?) ? thank you

What you're looking for are junk bonds and they're the likes of BBBY. Like the above poster stated, beware they come with high risk.

 

[BKR88]

Hi all

I'm with IB. I'm exp with trading equities/options but not bonds - help

Basically interested in putting my toe into fixed income; stupid questions galore.

Are there many short term company bonds available? I don't mind slightly higher risk but are there decent 8-10% fixed bond options (ire. MSFT? aapl? turkish pastry bbb bonds?) ? thank you

HYG is a corporate bond ETF. Very liquid ($15B AUM) with decent options. Safer than individual companies.
Currently yielding 5-6% paying monthly.

 

[M.W.]

Corporate bonds at such yield highly correlate with equity performance of the issuing company. You need to do more research.

Hi all

I'm with IB. I'm exp with trading equities/options but not bonds - help

Basically interested in putting my toe into fixed income; stupid questions galore.

Are there many short term company bonds available? I don't mind slightly higher risk but are there decent 8-10% fixed bond options (ire. MSFT? aapl? turkish pastry bbb bonds?) ? thank you

 

[M.W.]

While it lost 20% since the height of equity markets. A very poor investment during weak equity markets. For above mentioned reason.

HYG is a corporate bond ETF. Very liquid ($15B AUM) with decent options. Safer than individual companies.
Currently yielding 5-6% paying monthly.

 

[mervyn]

I heard on Bloomberg Radio few days ago that a EM bond manager bought Evergrande bonds at 8 cents plus accrued interest, later he sold it for 32 cents.

If you are willing to take risks, EM is a prefect place to look.

 

[M.W.]

EM equity and bonds are a lot more attractively priced than the likes in the US from a risk/return perspective.

I heard on Bloomberg Radio few days ago that a EM bond manager bought Evergrande bonds at 8 cents plus accrued interest, later he sold it for 32 cents.

If you are willing to take risks, EM is a prefect place to look.

 

[mervyn]

EM equity and bonds are a lot more attractively priced than the likes in the US from a risk/return perspective.

Bonds returns are attractive but not equities, assuming risk being equal.

 

[M.W.]

They are clearly not exhibiting similar risk profiles, hence, a moot point.

Bonds returns are attractive but not equities, assuming risk being equal.