Sentences with phrase «individual bonds»

We should be very clear that a bond fund is just a collection of individual bonds in which the manager acts as your buyer / seller.

Investors should also steer clear of buying individual bonds for a while.

If I read correctly, you invest in individual bonds not mutual.

This ETF offers targeted exposure to high yield corporate bonds maturing in 2018, giving investors a «yield experience» that aligns more closely with holding individual bonds.

We are now able to access the high - yield municipal bond space with ease, something we would not normally do with individual bonds.

In those days, some people owned individual bonds for income.

Bond Funds: Investing in fixed income based funds carries certain risks not typically involved in purchasing individual bonds or other fixed income securities.

The biggest advantage for individual bonds over mutual funds is that there is no interest rate risk for bonds held to maturity.

The portfolios are constructed using passive and index mutual funds as well as individual bonds and CDs.

You want a little bit more diversification, and then plus, the pricing on individual bonds on those small issues?

Bond funds differ from individual bonds in that most bond funds and ETFs have no set maturity date for the repayment of principal, and offer somewhat less principal protection.

I'm trying to determine how an liquid individual bond investor might profit from the market turmoil.

Unlike individual bonds, most bond funds do not have a maturity date, so holding them until maturity to avoid losses caused by price volatility is not possible.

The difference is that individual bond portfolios tends to have higher costs, less diversification, and cash drag.

Bond funds are often preferred over individual bond investments because they have lower minimum entry points, spread risk among multiple investments, and are more liquid.

In fact, some investors may find that individual bonds don't have any of the three aforementioned features of liquidity.

You can make investments in individual bonds by selecting them yourself or you can invest in a bond fund involving professional investors.

But I think there are a lot of misconceptions about the differences between individual bonds and bond funds.

A portfolio comprised primarily of individual bonds offers more transparency of security holdings than shares of bond mutual funds which are only required to publish actual bond holdings at quarter - end.

Sometimes, individual investors pay very high spreads and transaction expenses, when they buy or sell individual bond securities.

Other factors to consider when looking at individual bonds include the credit quality of the issuer and the time until the bond matures.

There are a number of terms unique to the bond market that you need to become familiar with if you are trading individual bonds.

This affects the way in which individuals bond and create relationships with one another.

Now your question is if you will be buying individual bond issues or purchasing a basket of bonds through an open ended mutual fund, and close ended mutual fund, or an ETF.

Buying individual bonds provides certainty, because investors know exactly how much they will earn if they hold a bond to maturity, unless the issuer defaults.

Start - up costs are the one drawback to bonds because individual bonds are generally more expensive than individual shares of stock and financing is not usually offered.

Bond funds have risks too, but you may be taking unintended or unnecessary risks by investing in individual bonds if you don't understand how these things work.

Researchers have found that, as with humans, individual bonds within bands may be more important than group identity.

You may already have a bond ladder, where individual bonds mature each year or two.

Individual bond prices are published in the same newspapers that publish bond fund prices, although many don't seem to know that.

Most individual bonds that currently trade in the marketplace are sold at a premium to their par value.

Overall, 30 % said they would consider replacing individual bond positions with bond ETFs in the next year.

Short sales and options on individual bonds generally are not available to individual investors.

Bond funds are professionally managed portfolios that invest in numerous individual bonds.

There are only two reasons to pick individual bonds over mutual funds.

While individual bonds can be sold before maturity, selling before maturity can result in a loss.

I think a bond ladder w / individual bonds helps but that really just makes it about opportunity cost if rates do rise.

After the right individual bonds are located, the portfolio manager can choose to sell down the ETF position.

Pricing for bond trades vary for different brokerages, so it is very important for investors seeking to buy individual bonds through online brokerages to be aware of the fees they may be charged.

Investing in individual bonds carries more risk because they are not diversified.

I mean of course individual bonds rather than bond funds since we are talking about a specific loan with specific interest rate and the promise to return the debt at maturity.

It should also be noted that the 7 year individual bond purchaser only holds a 7 year bond for a brief instant in time.

For the vast majority of folks your age, it makes more sense to buy diversified bond funds then individual bonds.

The money you put into individual bonds pays you an income at a fixed rate.

Similar to a stock mutual fund, a bond fund offers excellent diversification since there are hundreds or even thousands of individuals bonds included in the fund.

Unlike mutual funds, individual bonds mature at par letting the investor know exactly what they will earn if the bond is held to maturity.

Maybe individual bonds can give some people the peace of mind they need.

The day interest rates go up, individual bonds fall in value just like the bond fund.

What's more, you can buy shares in a diversified bond fund for much less than it would cost you to buy just a single individual bond.