The Financial Coach Show » Bonds & Bond Funds

Long Term Bonds: Good for you or good for the brokerage firms?

Bryan Binkholder — Tue, 27 Jul 2010 01:31:19 +0000

Many investors are being drawn into long term corporate bonds while not fully understanding the risks associated with this type of investment. As you will learn, the general idea of fixed income investments are for security and stability in your portfolio. While a bond seems to be more secure than stocks, the truth is in tough economic times like we’ve seen, many corporate bonds have lost significant value. Truth be told–The worse still lies ahead with future rising interest rates.

Municipal Bonds: The Next Crisis?

Bryan Binkholder — Tue, 10 Nov 2009 03:27:23 +0000

Originally posted on May 6th, 2009

Municipal Bonds–NY Times:

http://www.nytimes.com/2009/04/08/business/economy/08muni.htm

Investing In Long-Term Bonds–A Good or Bad Decision?

Bryan Binkholder — Tue, 10 Nov 2009 03:25:54 +0000

The Effect of Interest Rates on Bond Pricing, DOC

Click on the document above to find out how the price of a bond is affected by changes in interest rates.

Optimal Bond Maturity & Holdings, PDF

This file contains an example of how you determine the exact length (maturity) of a bond to purchase to give the best return and the proper time to sell the bond to ‘re-invest’.

Are Bond Mutual Funds A Good Idea? Who Benefits?

Bryan Binkholder — Tue, 10 Nov 2009 02:06:42 +0000

(Click on title to watch the video)

Bond funds or mutual funds primarily composed of bonds are sold to investors as a way to ‘diversify’ your risk when investing in bonds. The problem is that when times get tough, bond mutual fund managers must liquidate bond holdings to cover redemptions thus causing investors who are attempting to ’stay the course’ losses in their portfolio.