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Questions tagged [high-yield]

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4
votes
1answer
147 views

Bonds near maturity better than 3-month CDs? Need help explaining Bond stats

I have a ton of money in a checking account earning 0% interest. I thought about buying 3-month CDs with 2.25% interest (or 0.56% per 3 months), something short term so my money isn't locked up for ...
0
votes
2answers
178 views

Do Junk Bonds have higher coupon rates then investment grade/treasury bonds

I'm trying to understand how junk bonds would incite investors to purchase them, did they offer higher coupon rates then the prevailing market or were they simple priced cheaply in order to ensure a ...
3
votes
1answer
89 views

Are High Yield Bonds issued at a premium or discount?

Will the demand for a higher yielding security cause the high yield bond to be issued at a premium, or will the risk of default and other risks cause the bonds to be issued at a discount to face value?...
7
votes
1answer
96 views

Is it clever to balance a portfolio across different account types?

I thought about how to balance my portfolio between low-risk and high-risk investments and at the same time between IRA, IRA Roth, and normal investment accounts. (This question is not about how to ...
2
votes
1answer
28 views

How is P/E ratio of a bond fund calculated?

According to the Google search of NYSEARCA: HYG, that fund has a P/E ratio of 20.89. Which makes no sense, since bonds have yields (this one currently returns 5.04%), not earnings. So, what does ...
3
votes
2answers
208 views

Which spot Treasury bond is used to calculate this high-yield spread?

The link below shows the BofA Merrill Lynch US High Yield Option-Adjusted Spread. I am trying to have a better understanding of high-yield bonds before I invest in them. https://fred.stlouisfed.org/...
0
votes
1answer
250 views

High risk investment [closed]

I have a spare £500 I do not mind losing too much. But, I do not just want to throw it away. I have found high risk investments like this one from JP Morgan Chase, and over the past few years all ...
4
votes
1answer
251 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?
3
votes
2answers
123 views

Considering investing in CHN as a dividend stock

I've been looking at investing in another dividend stock, and I have been using dividata.com to do some research. I have found several stocks that I am interested in that have a roughly 9% or 10% ...
1
vote
1answer
476 views

Automating high- bank or credit union requirements (e.g. X debit card transactions per month)

Banks (and credit unions, etc.) that offer high interest typically require the customer to take some kind of action every month, such as performing 10 debit card purchases. I'm wondering if people ...
4
votes
2answers
615 views

What is the risk to a high-yield corporate bond fund versus an investment-grade corporate bond fund?

The yield for HYG, a high-yield (i.e. junk) corporate bond ETF, is currently 5.72% versus 3.56% for LQD, an investment-grade corporate bond ETF. Of course, higher yield generally means higher risk. ...
7
votes
3answers
1k views

What factors affect the yield and “trade value” on an exchange of a junk bond ETF?

In an effort to further my grasp of financial derivatives available for speculation and losing money, I realize I need further understanding of how "high-yield corporate", aka junk bond ETF's, "work" ...
7
votes
2answers
483 views

Stocks vs. High-yield Bonds: Risk-Reward, Taxes?

Assuming one is looking for a fairly high-risk, high-reward investment, what are the advantages and disadvantages of a diversified stock portfolio (e.g. an S&P 500 index fund) vs. a diversifed ...
3
votes
1answer
1k views

Anything wrong with American Express “Personal High Yield Savings” account?

I got a letter through the mail from American Express offering me a sweet 1.3% interest rate with an FDIC-insured savings account. I currently have a business savings account with a princely 0.35% ...
2
votes
3answers
124 views

What are a few sites that make it easy to invest in high interest rate mutual funds?

What are a few sites that make it easy to invest in high interest rate mutual funds? (12%+)