Corporate Bonds

Corporate bonds do look too good to be true at the moment, with bonds issued by large solvent companies paying 6% or more with a good chance of a capital gain as well. Usually this should cause concern, but the main reason for this is that bonds have been sold off by hedge funds because they need cash to remain solvent and bonds are easier to sell in a market like this. While stock markets have suffered during recent economic turmoil, bond markets have been more secure. They have not been immune to the banking troubles, but should be far more resilient to further trouble. What are they? Corporate bonds are IOUs issues by companies when they need to ...  Read the complete review

Well, if you can make more than 4% interest on your savings in the current climate you are doing a fine job of managing your money. For the context of the review, with a bank or building society investment, you are effectively lending your money to the bank to lend to someone else to buy a house. It should be as safe as houses. But what are those weird and wonderful bond things that you see in the financial press, advertising returns of 6%, 7% or even 8%! They are Corporate Bonds! Still none the wiser? Well, in short, a Corporate Bond is a loan to a business. Simple as that. You lend a company your money, they invest it in their business ...  Read the complete review

Corporate Bonds sound rather impressive, don’t they? In certain circumstances they not only sound impressive, they’re also useful. Let’s have a look at where they fit into your investment strategy. The first thing you should do when you start building up some savings is to make certain that you’ve got an emergency fund of about three months’ income for when disaster strikes. Everyone’s got their own emergencies lurking round the corner with a foot stuck out waiting to trip you up. The money may not solve the problem, but it certainly makes it easier if you don’t have to worry about finance at the same time. Make ...  Read the complete review