Junk Bonds – The Sexiest Investment
Comments OffA Short & Simple Lesson in the Danger and Allure of Junk Bonds You know you shouldn’t. Your CPA wouldn’t approve. Your wife would be furious if she found out. The guilt would consume you. Still, you can’t help casting a lustful glance at junk bonds with their 10-12% coupons. Just remember flashy investments usually [...]
Understanding Bond Duration
Comments OffHolders of bonds face a distinct set of risks that may be less obvious to the uninitiated. Thankfully, one of the biggest risks in the bond market – interest rate risk – is easy to determine, using a concept called duration. It’s possible to approximate how much a bond’s price is likely to rise or [...]
Bonds 101
Comments OffWhat Are They? Say you are in the grocery store with a friend on a Thursday afternoon and see something you need for your house; a broom for example. Although you get your paycheck the next day, you ask your shopping buddy to borrow a few dollars so you can purchase the broom now, in [...]
