All Questions
140 questions
2
votes
2
answers
306
views
Why would I buy bonds? [duplicate]
Say I want to buy a bond that matures in 10 years, and that pays out 5% of once a year, so it has 10 payouts remaining. Say the value is 100$. Say the bond is being sold for 140$ today. I would be ...
- 21
1
vote
1
answer
95
views
Characterising risks of an corporate/goverment bond ETF's
I have been looking at different conservative investment strategies such as 50/50 "interest fund", "global stock fund" and "the permanent portfolio".
As an alternative, I was looking for corporate ...
- 1,085
1
vote
1
answer
2k
views
What is the difference between SWK, SWJ, and SWP (Stanley Black & Decker)
Stanley Black & Decker seems to have three symbols on the NYSE.
SWK: Stanley Black & Decker, Inc.
SWP: Stanley Black & Decker, Inc. CORP UNIT 2017
SWJ: Stanley Black & Decker, Inc. JR ...
- 125
0
votes
1
answer
101
views
Extension risk with IO bonds
I'm trying to understand the extension risk associated with interest only bonds in a CMO. When rates rise, prepayments drop, and so the life of the IO bonds is extended. This causes the value of the ...
- 271
2
votes
2
answers
235
views
Am I confused about how to diversify into bonds?
I held several Vanguard equity ETFs (VFIAX, etc.) I wanted to diversify into bonds (as discussed in "A Random Walk Down Wall Street"), so I sold some of them and bought BLV.
As stocks have declined, ...
0
votes
1
answer
63
views
Optimal interest rate environment for mortgage-backed securities?
When rates rise MBS investors face extension risk and when rates are dropping investors face prepayment risk. If this is true then when is the optimal time to invest in MBS?
- 271
2
votes
2
answers
258
views
Question about the Federal Funds Rate
As I understand it, the Fed will set a target for what it wants the Federal Funds Rate to be and then try to achieve this goal through its open market operations. Is the amount of volume that the Fed ...
- 35
64
votes
10
answers
15k
views
Why don't bond makers just get loans?
I was just looking at investment opportunities, and I found a number of places offering bonds paying up to 12% interest over two years. My first thought was, I can get a loan from my bank for 5% ...
- 817
1
vote
3
answers
239
views
Bond Issuance Question
During a new bond issue how do the bankers/advisors determine an initial price for the bond? I know that during an IPO the investment bankers will guage demand for the issue, and price the issue ...
- 35
0
votes
1
answer
252
views
Why do CDO's have a reinvestment period?
If CDO's collect all the cashflows from their underlying assets and then pay them out to the CDO investors whats the need for a reinvestment period? and where is the principal that is being reinvested ...
- 271
1
vote
1
answer
351
views
Bond ETF's: why isn't the nominal value of the underlying asset mentioned anywhere?
I am wondering why you never see the (weighted) nominal value of the underlying assets of a bond ETF mentioned anywhere.
It seems to me this information is needed to determine whether a bond ETF is ...
- 111
26
votes
9
answers
7k
views
What does one typically use as a money reservoir for stocks, when they are "on sale"?
I've read about people who claim to have made a lot of money investing in stocks (or funds) after a crash. They say the stocks were "on sale".
But I wonder, where did they get the money to buy these ...
0
votes
1
answer
278
views
In what circumstance would a company want to establish an SPE to engage in following investment?
I was reading a book explaining Special Purpose Entities (SPEs) and an example is used in the book:
a firm could sell loans it has made to customers to an SPE that issues
bonds to purchase the ...
- 103
4
votes
2
answers
200
views
What does a long term bull market in bonds mean?
I recently read this in an article about the current state of the bond market:
Coming off a 40-year bull market in bonds, the potential for capital
losses on bond investments is very real, and ...
- 143
0
votes
3
answers
410
views
Should I invest everything in bonds?
I will be finished with my master's degree in 4 years and I have 75K to invest. I want as much security as possible, at least till I have the degree. Then I would use the money and take an investment ...
- 131
2
votes
1
answer
6k
views
Capital gains tax on US treasury bonds
If one buys 30 year bonds directly from the treasury, I understand the semi-annual interests are taxable at federal level. But what about capital gains in case the bonds are purchased at a discount ...
- 556
1
vote
2
answers
193
views
How to mitigate 401k risk with bonds?
I’ve read that for 401k’s, you want to reduce risk as you get older and the primary means to do that is to move money out of stocks and into bonds.
Assuming that principle is generally valid, then ...
- 319
0
votes
2
answers
196
views
Does a stock/bond that stays at level price lose money over time?
I have the concrete problem of choosing which of a bond and a stock I should sell. Below, the price of the stock is shown in red, while the bond is black. The rest are various indices in Scandinavia (...
- 103
2
votes
3
answers
1k
views
How can I calculate the volatility(standard deviation) of a stock price? and/or ROI (return on investment) of a stock?
I'm trying to build my first portfolio, I've already have set out my monetary goals, graded my risk tolerance and determined the asset allocation I wanted to go with. So, now for the next step I need ...
- 21
4
votes
1
answer
1k
views
High Interest Savings Account vs Bond ETF
Which of the following is a better investment for long term investing and why?
High interest savings account paying 2.3% interest, no account fees and the funds are protected by the Canada Deposit ...
- 247
0
votes
1
answer
86
views
Income investing in rising rates environment
I have invested in bonds and REITS ETFs for income. But these investments probably will not do well if interest rates go up. Are there any investments that will do just fine or even benefit when rates ...
- 789
6
votes
4
answers
672
views
Does it make sense to compare the "returns" from debt payoff with long-term stock market investment returns?
I've been thinking long and hard about whether to pay off my student loans with the smaller interest rates as quickly as possible or just pay the minimums and start investing.
After reading bunch of ...
- 663
4
votes
4
answers
1k
views
Should I use put extra money toward paying off my student loans or investing in an index fund?
The following is what I've written so far to examine and try to solve this dilemma I'm in of whether to put my extra money toward my student loan debt or invest it, which I'll be publishing on my site ...
- 663
4
votes
1
answer
1k
views
What are the ways compounding can occur from an investment in stocks and bonds?
I've been trying to understand the multiple ways stocks and bonds compound (under the definition of compounding as generating earnings from the reinvestment of previous earnings, my understanding of ...
- 663
0
votes
1
answer
138
views
What investment is best? [closed]
I recently started a savings account that gets me .015% and a CD of .025%. I want to increase my investments as fast as I can. I don't want to go into stocks; I would prefer bonds and notes. What ...
- 103
16
votes
7
answers
12k
views
Are bonds really a recession proof investment?
I believe that another crisis is imminent if Trump goes ahead with deregulation of financial firms. Whether that is true or not is not my actual question.
In that context, I want to protect my 401K ...
- 363
1
vote
3
answers
361
views
Any reason to hold large amounts of cash over bonds?
This question assumes one has an appropriately sized emergency fund already established.
If I expect the equities market to decline in the next year or two - what specific circumstances would make ...
- 671
3
votes
1
answer
3k
views
I have 50k and want to build up a passive income [closed]
Right now I have 50k/no debt and I am trying to build up a passive income. I need something that will generate me around 5k a year. I'm a little scared and don't know much about investments. I'm ...
- 31
7
votes
2
answers
7k
views
What does S mean in a bond name?
Recently i read many bonds names such as Elevated Railroad First 5s, United Drug Company 7s, etc. What does 5s or 7s mean?
- 73
0
votes
3
answers
330
views
How does a bond fund fall in value?
Obviously the bonds will lose value if the issuer defaults, but if there is a stable, predictable number of defaults in the fund's bond holdings, how does a bond fund fall in value? I know that the ...
- 137
1
vote
0
answers
570
views
Early tender offer is less than the current value of the bond. What is the benefit?
I received an early tender notice for a bond I hold:
Terms: $815.00 per $1000 P.A. plus int.
In addition, holders who
tender their notes prior or on 08/25/16 (The Early Tender Date) are
...
- 239
7
votes
5
answers
344
views
CIBC bonds with negative return [duplicate]
There is a story on CBC that
investors are lining up to buy bonds with negative return
from Canadian Imperial Bank of Commerce (CIBC).
I don't understand why they are doing so.
Can someone explain ...
- 173
9
votes
1
answer
1k
views
Bond gain is greater than remaining coupon payments. Time to sell?
I wanted to learn about bonds so I bought a rather risky one (Chesapeake Ene Corp SR NT 6.62% 08/15/2020 / 165167CF2). Since purchase, the price of the bond has risen 72.81% for a gain of $257.02 as ...
- 239
12
votes
1
answer
3k
views
200%+ return in 10 years from......bonds?
I read an article this morning about a million dollar bet Warren Buffett made with a hedge fund that would take 10 years to determine the outcome. They didn't each put down a million dollars, rather, ...
- 594
4
votes
5
answers
214
views
Is the need to issue bonds a telltale sign that the company would have a hard time paying coupons?
Background
I'm trying to solidify my understanding of bonds, and I have a question regarding something that's probably very basic.
Question
Say I have a company and I want to issue some bonds in ...
- 211
4
votes
2
answers
1k
views
Bond strategies for a steepening yield curve?
If it is believed that the yield curve is going to steepen very soon, it may be fall in short-term rates, a rise in long-term rates, or some combination of these. What strategy should you pursue in ...
- 41
0
votes
1
answer
167
views
Where to invest, that compounds interest more than annual?
Forgive my ignorance, I found this webpage compounding weekly and noticed the 0.24% 7 day rate.
I have heard that there were secure investment vehicles that compounded interest more frequently than ...
- 3
22
votes
4
answers
7k
views
Why would I not buy a bond for less than face value?
The way I understand it is that if you own a bond at maturity you will get the face value of the bond at that time.
So if you can purchase a bond at $80 which has a face value of $100 why would I ...
- 716
1
vote
2
answers
883
views
How to read a chart on bond price?
I recently bought some bonds, but don't quite understand the data presented to me. First I will show you two images:
SUMMMARY:
CHART:
The SUMMARY shot shows MARKET COST: 93,300,000 with current ...
- 173
4
votes
4
answers
734
views
Should I replace bonds in a passive investment strategy
In a passive investment portfolio one usually has some sort of mix between stocks and bonds which are supposed to offset losses from each other. I've read that because of low interest rates persisting ...
- 141
4
votes
1
answer
147
views
How/where can a U.S. resident buy recently issued Chinese 3-month Treasury bills?
According to Reuters:
China has rolled out a flurry of reforms recently to liberalize its
markets and also help the yuan meet the IMF's checklist, including
scrapping a ceiling on deposit rates,...
- 2,413
3
votes
2
answers
221
views
Looking into investment bonds for the first time- what do I need to be aware of?
I have an ISA that has matured recently, and am now looking to reinvest that balance elsewhere. Given that most of the ways I usually save (current/ savings accounts, regular savers, ISAs, etc) aren't ...
- 839
1
vote
2
answers
257
views
Dividend yeild per unit
I have been reading the intelligent investor, on chapter 4 page 91 Graham goes on to say..
While our proposed 50–50 division is undoubtedly the simplest
“all-purpose program” devisable, it may ...
- 113
0
votes
1
answer
178
views
Helping my family sell their oil stocks. What to buy? [closed]
sorry I'm a bit new to the investing world. I am familiar with most topic from my business minor.
My family has a lot of their retirement in oil company stock. (I know, diversify.. they don't know) ...
- 123
4
votes
1
answer
624
views
Given current market conditions, how / when should I invest a $200k inheritance?
Situation: I have $100k in an IRA with Betterment, plus just inherited $200k - currently cash. I'm 34 years old and salary is $97k, with no debt.
Goals:
IRA: growth of principle for retirement (...
- 41
1
vote
3
answers
431
views
Advice for a college student interested in investment opportunities.
I'm 20 years old and currently attending university for a double major in engineering and science fields. My college expenses are being covered. In addition to that i have worked for the past few ...
- 19
1
vote
2
answers
243
views
How do investors know what the discount rate is?
Let's say that Jim buys a bond whose face value is 100$ and has a 4.75% coupon, with coupon payments given annually, that matures in 5 years. Jim buys this bond today for 103.05$.
Letting x ...
- 279
5
votes
2
answers
301
views
Bond ETFs vs actual bonds
If the goal is to diversify a portfolio and add bond investments in a manner like that described in Intelligent Investor, would owning a bond ETF provide the required diversity or does it need to be ...
- 151
3
votes
1
answer
768
views
Structure of Final Bond Payment
If I buy a bond and hold it to maturity, will the final payment be dependent on the current price of the bond, or will it be the amount I originally paid?
- 33
2
votes
1
answer
177
views
Why is a 2-year bond not a good store of nominal value?
I was recently confronted with the following question:
Which of the following is not a good store of nominal value?
a: checking deposit
b: savings deposit
c: 1 2-year bond
d: a 3-month CD
The ...
- 123