Archive for the 'Bond Investment' Category

Why Index Bond Funds Are Good For Risk Diversification?

Index bond funds are very popular with numerous investors for several reasons, and they can play a big role in portfolio risk diversification as well. These funds are good for risk diversification in several ways. Index funds will contain many different holdings, so you will start out with an investment that can be diverse from the very beginning. These funds are built using a specific index for guidance, and the holdings will mirror those of the index being followed in the hopes that the performance will also be similar. Diversity in your investment portfolio is the best way to manage risks, and this is what index fund choices can offer. This is just one of the reasons that these choices have seen increased popularity among investors, because they can offer risk diversification benefits.
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What is the trend of historical municipal bond

The municipal bond market represents 1.5 million issues sold by 50,000 issuers with a varying range of credit ratings, and traded and underwritten by as many as 2,000 dealers. This far outpaces the number of issues listed by the U.S. stock market. Historical municipal bond yields keep growing, especially when the economy is in a downward spiral.
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Treasury bond bubble: countdown is still on?

Treasury bonds have usually been one of the few less risky and more stable venues for investors. Most of these investors are typically not comfortable with the standard stock market. While treasury bonds have lower yields, they have long been dependable. The recent economic dilemma has spurred even more concerned citizens to buy into the treasury bonds market. This increase in purchase is called a treasury bond bubble and is based on fear of market direction as opposed to greed. The questions are: how long will the bubble continue?
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What is municipal bonds risk nowadays?

In today’s market, everyone interested in a good investment seems to have a bit of skepticism and doubt. However, somewhere along the line in history, the concept of investment seemed to exclude the realism of the element of risk. Municipal bonds risk can fluctuate on the risk grid, depending upon your choice of bond.
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Government bonds investment is not a safe heaven anymore?

A government bonds investment is normally looked at as a risk proof choice, one that may offer lower returns but that can help you protect against any risks in the real world. Because these bonds are backed by the full faith and power of the government, they are generally perceived as safe, but this may no longer be the case. Government bonds can include bonds from various different government agencies on all levels, and the theory that these are safer than other forms of investment is no longer true. One factor involved is inflation, and another is the strength of the United States dollar. The stock markets, and other riskier investment forms, can pose many more risks, but bonds are no longer the sure bet that they once were either, even United States Government bonds.
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How different types of municipal bonds work?

The municipal bonds market can be a highly regarded investment area, depending upon the types of municipal bonds that you choose. The well chosen municipal bonds can offer excellent rate of return along with tax free incentives.
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How to determine investment grade corporate bonds?

Understanding the difference between the stock market and corporate bonds is key before a decision is made towards investment grade corporate bonds. The stock market is traded on Wall Street, whereas most corporate bonds are an electronic or over-the-counter trade. There are a few exceptions to this rule where corporate bonds are exchanged via an actual exchange. While the stock market is much better known, it is small in comparison to the international bond market. If you are interested in investing in corporate bonds, the question arises as to which ones to choose for the best return for you?
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How to find best muni bond prices?

There is more to the process of investing in municipal bonds than just examining the prices. If you are seriously considering investing in muni bonds, you will first need to do some research. The homework is important because this is your money you are investing and you want to ensure that you will be accomplishing both the most reliable as well as the best muni bond prices.
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Municipal bond information you absolutely need to know before investing

Municipal bonds have historically been one of the few areas of more secure risk investments. All this has changed with today's economic woes. Investors must do a lot more in depth research before randomly placing their hard earned money in municipal bonds to make sure they select the right ones for their investment needs. There are still many municipal bonds that far outshine the mainstream stock investments.
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Is cref bond market good for retirement?

The CREF bond market is designed to assist longer term retirement needs that might include education savings, after-tax annuities, general retirement plans, life insurance, individual retirement accounts and mutual funds. While CREF bonds have experienced over ninety years of positive growth, today's economic trends ask the question is the CREF bond market good for retirement?
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