I was wondering if anyone can direct me towards a good bond broker for a retail investor like myself? I dont know much on how to get involved in buying bonds but I have heard some pretty high yields being paid out on some corporate and municipal bonds. Any insight on how one goes about getting into purchasing bonds is appreciated. I am not looking to trade the bonds but actually use them for a long term investment. Also, if anyone has any suggestions for some bonds I should look into I would also appreciate that. Thank you
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Investing in Bonds
- Thread starter sledged
- Start date
I think most retail brokers, like Fidelity or Charles Schwab, would be able to offer you bonds. In fact, you can go to the Charles Schwab website for some research, although I hear they're a pretty bad broker in US trsies. I am not sure about munis/corps.
If you want to protect your capital, holding corporate bonds long term is suicidal....don't fall for extra % in interest...read the black swan and worry about your capital rather than the interest you can get paid...
there are etfs for what you want to do. i think even with bonds you need to diversify.Quote from sledged:
I was wondering if anyone can direct me towards a good bond broker for a retail investor like myself? I dont know much on how to get involved in buying bonds but I have heard some pretty high yields being paid out on some corporate and municipal bonds. Any insight on how one goes about getting into purchasing bonds is appreciated. I am not looking to trade the bonds but actually use them for a long term investment. Also, if anyone has any suggestions for some bonds I should look into I would also appreciate that. Thank you
IB is only one,who provide direct access to the bond markets. no markups, you get what you see and commissions are like $5. but...i notice that YTM calculations are incorrect and they knew about it..make sure you double check yields. also-they not keeping up with ratings. but this is easy to double check,using info from FINRA websiteQuote from sledged:
I was wondering if anyone can direct me towards a good bond broker for a retail investor like myself? I dont know much on how to get involved in buying bonds but I have heard some pretty high yields being paid out on some corporate and municipal bonds. Any insight on how one goes about getting into purchasing bonds is appreciated. I am not looking to trade the bonds but actually use them for a long term investment. Also, if anyone has any suggestions for some bonds I should look into I would also appreciate that. Thank you
If you think HSBC Fin Corp will survive the crises, they have some nice yielding bonds. For example
CUSIP 40429XC95 Matures Nov 15, 2010 YTM around 16% and
CUSIP 40429CCX8 Matures Jan 14, 2011 YTM around 16%. Both of these are rated "A" by S&P.
Another "A" rated one is Household Fin Corp CUSIP 441812GM0 with an 8% coupon. Matures 7/15/2010, YTM around 11%. There are definitely some nice yields out there. The question is will the issuers be around to pay come maturity date.
CUSIP 40429XC95 Matures Nov 15, 2010 YTM around 16% and
CUSIP 40429CCX8 Matures Jan 14, 2011 YTM around 16%. Both of these are rated "A" by S&P.
Another "A" rated one is Household Fin Corp CUSIP 441812GM0 with an 8% coupon. Matures 7/15/2010, YTM around 11%. There are definitely some nice yields out there. The question is will the issuers be around to pay come maturity date.
Quote from sledged:
hmmm, interesting, never thought of the etf route. I will look at that option as well. I agree that the corporate bond route could be more dangerous than it may look like on the surface and that does worry me.
you mixing apples with oranges..when bond matures you will receive your principal + interest..the price may go up or down,but if you hold until maturity-you will get your money back(assuming there is no default in middle).with etf they will pay you every month or so but it can decline in price... and it can be substantial decline. i have portfolio on watch with some muni etf's...they are "safest" ones..guess what? down -30%..