Author Archives VM

by VM in FAQ August 31, 2012

What are Gilts?

Gilts are the crème de la crème of low risk investments. Backed by the British government, no other investment offers a more watertight guarantee. However unlikely, there is always the possibility that a bank, building society, guaranteed bond or structured product provider will go bust. The chances of the government Continue Reading →
by VM in Corporate Bonds, FAQ August 29, 2012

What are Convertible Bonds?

Convertible bonds can be exchanged for some specified amount of common or preferred stock in the issuing company. At the time of issue, the terms of conversion will be outlined, including the times, prices, and conditions under which it can occur. Most convertible bonds are also callable. This means, in Continue Reading →
by VM in Corporate Bonds August 23, 2012

L&G to launch passive sterling corporate bond fund

Legal and General Investments (LGI) is to launch a passively managed sterling corporate bond fund, subject to FSA approval. The firm is launching the fund in preparation for RDR, as it says that there will be a “significant shift to passive funds” as a result of the new rules. The Continue Reading →
by VM in Corporate Bonds, FAQ August 21, 2012

Bond Investing Strategy for August 2012

Stay safe in August: US investment grade corporates and high rated high yield offer the best risk reward. We hesitate to increase exposure to risk in the coming months. The EU summit lowered the global political risk backdrop, but comes as slowing economic growth in most major economies is gaining Continue Reading →
Comments Off on How to Stress Test Your Bonds
by VM in Corporate Bonds, FAQ August 16, 2012

How to Stress Test Your Bonds

After falling steadily for the last 30 years, interest rates can’t get much lower. Bond investors know that’s reason to worry: When rates rise, bond prices fall. But bond investors needn’t be at the mercy of the Federal Reserve — your fund manager or financial adviser has already given you Continue Reading →
by VM in FAQ August 14, 2012

Top 5 Alternative Investments in 2012

As alternative investments are becoming increasingly mainstream, itís becoming easier for investors to make money from investing in more exciting assets. Here are 5 promising alternative investment opportunities you can use to your advantage this year: 1)  Forestry Investments Investing in a forest, whether it is the trees, the land, Continue Reading →
by VM in Corporate Bonds, FAQ, Financial Advice August 09, 2012

How to Convert your Bonds

Converting a bond is based on par value and the fixed conversion price that appears on the bond. The conversion price is not the price the stock is purchased at. So, it is unlike a “Stock Option”. The time to convert is the investor’s choice. An example: A customer owns Continue Reading →
by VM in FAQ August 07, 2012

10 Tips on Buying Corporate Bonds

10 tips to help you buy the right corporate bonds and make the most profitable investment. Do your research into the corporation that is issuing the bond. Check to see how well the business has been doing financially within the last few years and look at the proposals for the Continue Reading →
by VM in Corporate Bonds, FAQ, Financial Advice August 03, 2012

Are corporate bonds a good choice now?

A quick video demonstrating why Corporate Bonds are a wise investment now, it argues that: Corporate Bonds currently have higher yields than Government bonds Great diversification with: Approx. 3% for corporate yields 1% for government yields in Germany Lower risk: Euro corporates: average: A2 Government bonds: several have now been Continue Reading →
by VM in FAQ July 31, 2012

How to buy and sell corporate bonds: direct investing vs bond funds

Typically retail investors have bought corporate bonds through funds. These invest in a number of different firms and help spread risk accordingly, you will end up paying fund manager fees though. A bond fund manager aims to take advantage of swings in the markets and deliver a return based both Continue Reading →