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Questions tagged [bonds]

Use this tag for questions that relate to debt instruments known as bonds. Generally, money is lent to governments or corporations that is paid back with interest.

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1answer
569 views

Where can end-of-day data be downloaded for corporate bonds? [closed]

I would like to download historical end-of-day prices for corporate bonds. What are some websites for doing so? I do not mind paying for the data but Bloomberg is too expensive, even though it is very ...
2
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2answers
385 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 ...
-2
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1answer
142 views

Can i know the place where we can buy the stocks and bonds?

What do I need to trade in stocks and bonds.I don't know the actual place where it happens ( is it in banks, or some other place) and I don't know what is the process to hold and sell the stocks.
4
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4answers
340 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 ...
4
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1answer
249 views

Why is the bond market tanking? [closed]

Bond spreads have moved up significantly this year, with a sell-off this past week. Some of the underlying factors seem to be well-known in the market for a while. Why the sell-off now?
4
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2answers
404 views

Are AAA private-sector corporate bonds safer than government bonds?

Conventional wisdom says that government bonds are the safest investment there is. But the Indian government is rated only one level above junk. Aren't AAA-rated bonds of Indian companies safer? Haven'...
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6answers
982 views

Why buy bonds in a no-arbitrage market?

If the bonds rate is the same as market interest rate, why would anybody bother buying bonds instead of just putting money in a bank?
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3answers
137 views

Is it normal that US Treasury bills(0.07%) yield smaller than interest rate(0.25%)?

I assume that under stable economy, US bonds with longer maturities should yield more. However, the current 3 month bill yields 0.07%( 0.23% for 6 months bills), which is below the overnight interest ...
1
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1answer
269 views

Can I sell section 54EC infra bonds before maturity?

This question pertains to section 54EC infrastructure bonds that are offered in India — the ones with tax-free dividends (though the principal is taxed). I have invested some money in NHAI and IRFC ...
2
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1answer
491 views

If I cash in a U.S. treasury bond before maturity, do I lose out on the difference in face value and purchase value?

I have a 30-year U.S. treasury bond (series EE) that is about 3 years away from maturity. I'm considering cashing it in. However, the purchase value was half the face value. If I cash it in, would I ...
4
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1answer
115 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
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3answers
693 views

Basic understanding of bonds, values, rates and yields

I'm looking for a very simplistic (ELI5) explanation of how bonds work, but I'm not sure I have the basics correct. As I understand it, a bond is basically a IOU or loan. Any company, government or ...
3
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1answer
91 views

Does exposure to financials in corporate bond funds make sense?

While examining different corporate bond ETFs, I noticed that many bond funds seem substantially exposed to the finance sector. I see percentages of up to 60% of all positions in financial businesses. ...
2
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1answer
880 views

Do US Series I Savings Bonds have CUSIPs?

Do Series I Savings Bonds ("I-bonds") have CUSIPs? If so, how can I find the CUSIP for my electronically-purchased I-bonds? The TreasuryDirect website has information about some recent auctions with ...
3
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2answers
178 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 ...
13
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2answers
4k views

Why don't companies buy back their own (cut-price) debt?

A thought occurred to me today. Glencore's debt is trading at about 70% of face-value. If you're Glencore, what's to stop you buying that debt yourself and pocketing the difference? In particular, ...
0
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1answer
216 views

Do buyers of bond ETFs need to pay for accrued interest?

When buying normal bonds, the buyer needs to take note of accrued interest. He should take note whether the price quoted is a clean (excludes accrued interest) or dirty price (includes accrued ...
2
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1answer
2k views

What is an “undervalued” or “overvalued” bond?

Here's a small excerpt from Bond Valuation section on Investopedia: Determining Whether a Bond Is Under or Over Valued What you need to be able to do is value a bond like we have done before ...
2
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3answers
142 views

Are junk bonds advisable to be inside a bond portfolio that has the objective of generating stable income for a retiree?

Suppose a person has retired. He would like to construct a bond portfolio that generates stable income for his remaining days. Is it advisable to include junk bonds in the bond portfolio for that ...
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2answers
141 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 ...
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3answers
142 views

Does an owner of a bond etf get an income even if he sells before the day of distribution?

Suppose an investor owns a bond ETF for 1 month and sells without waiting for the date of income distribution, will he still get paid an income for owning the bond ETF for 1 month? This does not work ...
3
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0answers
71 views

Are foreigners who buy UK ETFs subjected to a withholding tax?

Currently, when a foreigner buys U.S ETFs, the dividends or income (in the case of bond ETF) will be taxed at 30%. Suppose a foreigner, say an American or Singaporean, buys a UK bond ETF. Is there a ...
2
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1answer
1k views

Formula to compute 10 year US governement bond price given yield

What is the formula to convert US govy 10 year yields (as those shown here) in to bond prices? I know in general the math looks like this but I don't know what the values of the variables are for a ...
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3answers
287 views

Does the P/E ratio not apply to bond ETFs?

I cannot seem to find them on any website, but I have seen their existence for stock ETFs. If the answer to the question entitled is 'no', then why not? I exemplify with 2 ETFs: Blackrock (Canada)'s ...
0
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1answer
159 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) ...
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4answers
207 views

Why should investors care about the interest rate risk, if they only care about the money they have at retirement?

I understand the concept of the interest rate risk (bonds lose value as the discount rate increases). However, if an investor only cares about how much money he will have at retirement and he wants a ...
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4answers
2k views

What are some good books for learning stocks, bonds, derivatives e.t.c for beginner with a math background?

Despite being STEM person, I always wanted to learn how stock & financial markets work. I always wanted to know how those stocks work, what are those bonds e.t.c. The only struggle I am having, ...
4
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1answer
477 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 (...
0
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1answer
94 views

Are bond ETFs considered low risk in this market?

I'm thinking about moving my money to an automated management service. I've set my risk profile to 3.5 (low) which means they would invest around 35% in bond ETFs. With today's interest rates being ...
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3answers
415 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 ...
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2answers
204 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 ...
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1answer
149 views

Calculating the rate of return (ROR) when buying and selling bonds that carry cupons?

Suppose I have bought a bond in some price - X, for 10 years. Now I decide to sell it 2 years after the purchase for some price - Y. I would like to calculate the ROR I got from this bond. My real ...
2
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1answer
115 views

How to calculate after-tax return if investor can use capital loss, in Canada?

[Source:] As you can see in the table, the $105,000 government bond matures at $100,000, for a capital loss of $5,000. The investor would also collect interest totalling $9,660 over the three years ($...
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2answers
196 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 ...
3
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2answers
156 views

Should you diversify your bond investments across many foreign countries?

I already know, and so ask not, about the benefits and need of bond diversification across different kinds, maturities, and ratings (eg Short- vs Long-term, AAA to corporate). Global diversification ...
4
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1answer
558 views

Related Hedges (How do they work?)

I'm currently re-reading Benjamin Graham's book, The Intelligent Investor. In it (Chapter 15), Graham mentions some of the undertakings and operations his fund, Graham-Newman Corporation, was involved ...
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3answers
2k views

Are a bond's yield and interest rate the same thing?

Are they the same thing? Is yield the annualized return rate? Why when yield rise, yearly return increases, but price falls?
3
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1answer
407 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?
2
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1answer
118 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 ...
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1answer
43 views

Can I buy a bond at par if I buy it at the time of issuance directly from the issuer

When a company issues bonds, if I buy directly from the company at the time it is being issued, can I hope to buy the bond at par? I am looking at canadian bonds and all of them are selling at premium ...
4
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1answer
110 views

Do longer term bondholders get preference in getting money back when a company defaults?

When a company defaults on its debt, would the 10 year bondholders be given preference to the 1 yearr bondholders while paying out money? What is the order of preference?
3
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1answer
3k views

What does “compression of spreads on high-yield debt” mean?

What did Federal Reserve Chair Janet Yellen mean when she said the following? "We’ve also seen the compression of spreads on high-yield debt, which certainly looks like a reach for yield type of ...
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1answer
107 views

Do we pay interest rates when holding a bond?

When we try to find the present value of a bond I understand we should discount the coupon payments and the face value by the ''current interest rates''. My question is what are these interest rates? ...
2
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1answer
87 views

How to Buy “Exotic” Bonds as a Low Net Worth Individual?

I'm a low net worth individual looking into investing into Junk Bonds but I have no idea where to start! I understand that you will need to buy through broker. But I am struggling to find brokers ...
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2answers
2k views

How can one short German bonds?

Does anybody know what is the best way to short German bonds?
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2answers
4k views

Ray Dalio - All Weather Portfolio

I am in a difficult situation right now where I need some expert advice. I recently finished reading Tony Robbin's Money Master the Game book and he talks about Ray Dalio All Weather Portfolio ...
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1answer
69 views

historical data for analysing pensions [closed]

It is my contention that one of the benefits of a pension is that it provides a system for age-averaging. Imagine three people, each born five years apart (say 1960, 1965 and 1970). These three ...
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3answers
459 views

Is buying puts on a ten-year treasury ETF a good way to hedge mortgage rates?

I'm looking to hedge against rising thirty-year mortgage rates for the short term while we are house shopping. Would buying an appropriate number of put options on something like IEF (iShares ...
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1answer
65 views

What is the difference between issuing company and holding company in a convertible bond

I am researching convertible bonds in Canada. While looking at the index etf that tracks convertible bonds, CVD What I don't understand is how come the list of Top 10 issuers is different from teh ...
2
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1answer
480 views

'longer-term/lower-coupon bonds' vs 'shorter-term/higher-coupon bonds'

[Source:] Arthur Salzer, B.A. Econ. (McMaster University), CFA, CIM “Remember that longer-term/lower-coupon bonds go down more in price than shorter-term/higher-coupon bonds do when interest ...