Bonds

Forget Bonds, Buy Unilever

Forget Bonds, Buy Unilever

Unilever plc (UL) is a leading international consumer goods company, and one of the largest providers of personal care products. Some of its well-known leading brands include Dove, Lifebuoy, Hellman’s, Knorr, Axe, and Magnum. Because of the business it’s in—consumer staples—Unilever’s stock is often thought of as a “bond proxy.” This status helped propel its […]

Why Bonds Will Be Among the Biggest Winners of 2023

Why Bonds Will Be Among the Biggest Winners of 2023

Along with a bear market for stocks, 2022 has, according to Morningstar, been the worst year ever for the bond market. Bond values have fallen up to 30% this year, putting a bigger dent in many retirement accounts that hold bond ETFs. Fortunately, in the current, higher interest rate world, you can invest safely in […]

Get a Government-Backed 9.62% with This Investment

Get a Government-Backed 9.62% with This Investment

With the stock market tumbling, investors are on the hunt for safer investments that pay attractive returns. The fact that you can earn 9.62% from a U.S. Savings Bond is getting a lot of buzz. Today, let’s review the features, pros, and cons of investing in these Series I Savings Bonds. The U.S. government sells […]

An Easy and Safe Way to Earn 4%

An Easy and Safe Way to Earn 4%

As inflation has climbed to 40-year highs, interest rates have also ratcheted higher. For borrowers, higher rates are not a good deal, as they raise the costs of taking out loans. For investors, however, higher rates open up opportunities to invest safely and still earn a meaningful return. Today, let’s talk about an investment product […]

How Squeeze Extra Cash From Your Bond Funds With Options

How Squeeze Extra Cash From Your Bond Funds With Options

With interest rates moving higher, so are bond yields.  However, bond funds still aren’t that exciting from a yield perspective.  For instance, iShares 7-10 Year Treasury Bond ETF (IEF) has a dividend yield of only 1.5%. One way to boost the cash flow from popular bond funds like IEF is to sell calls against the […]

One Way To Double Your Dividend From Corporate Bonds

One Way To Double Your Dividend From Corporate Bonds

Corporate bonds are near all-time highs as yield seekers are looking to improve on low yields from government bonds.  The iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) is one of the most popular vehicles for getting exposure to high quality corporate bonds.  However, the dividend yield is only 2.3% for LQD, and the […]

Uncle Sam’s 7% Income Christmas Gift

Uncle Sam’s 7% Income Christmas Gift

Dear Reader, Those of us out in the real world, buying gasoline, bacon, Christmas gifts, and renting homes, understand that inflation is real and probably higher than the official government inflation number. However, interest rates on fixed-income investments such as Treasury bonds and CDs remain very low. One exception is the U.S. government’s inflation-linked savings […]

Is Inflation Going To Tank The Corporate Bond Market?

Is Inflation Going To Tank The Corporate Bond Market?

Inflation is what everyone in the market is talking about these days.  The financial markets are concerned that the Fed will have to hike rates much sooner than expected.  Higher rates will significantly impact fixed income products like Treasuries and corporate bonds.  Perhaps that’s why an institutional trader purchased 160,000 put spreads in iShares iBoxx […]