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Special Report on

Taxable bond investing

taxable bond investing special research report Photo by
is an essential attribute for understanding the riskiness of a fund or ladder over time. There's also an important distinction between owning a ladder of individual bonds designed to meet specific future liabilities, and holding a rolling bond ladder . Many, if not most, Bogleheads and other investors use bonds as part of a larger portfolio because of their stabilizing properties on the whole portfolio (in this context, the proper framework for analysis is its historical long-term returns as an asset class, its risks, and its relation to the rest of the portfolio). However, the comparison of bond funds to individual bonds ...
stake in the company (i.e., they are owners), whereas bondholders have a creditor stake in the company (i.e., they are lenders). Another difference is that bonds usually have a defined term, or maturity, after which the bond is redeemed, whereas stocks may be outstanding indefinitely. An exception is a consol bond , which is a perpetuity (i.e., bond with no maturity).
Searching for Income…Bond Investing
When you buy a bond, the bond issuer – either a government or corporation – pays you an agreed-upon rate of interest known as the coupon rate. In addition, you get your original investment back when the bond reaches a maturity date. Bonds come in many flavors: taxable and tax-exempt, long- and small-term, AAA-rated ... market research, surveys and trends
Tax-Free Bonds & Bond Funds
Municipal bonds (munis) have been around for years and offer investors interest income that is tax-exempt, free from federal income taxes.  This is important to many bond investors, because they buy bonds for the higher income they pay vs. CDs and savings accounts.  Municipal bond funds invest in munis.  Hence, if you buy the fund, ... market research, surveys and trends


California Markets Second-Biggest Taxable Bond Sale of 2010 ...
March 25 (Bloomberg) -- California, the lowest-rated U.S. state, will market the year’s second-biggest sale of taxable debt as demand from investors around the world rises for the Build America Bonds it issues. California, the biggest seller of Build Americas, is offering as much as $3.4 billion in taxable debt to institutional buyers today, said three people with knowledge of the sale. That’s 70 percent more than the $2 billion initially planned and the biggest such deal since Illinois sold $3.47 billion three months ago. Preliminary pricing showed California is seeking to sell 30-year taxable bonds with a yield of ... industry trends, business articles and survey research
Section 2: Recent Mutual Fund Trends
With $9.6 trillion in assets, the U.S. mutual fund industry remained the largest in the world at year-end 2008. Nevertheless, total net assets fell $2.4 trillion from year-end 2007’s level, largely reflecting the sharp drop in equity prices experienced worldwide in 2008. Investor demand for mutual funds slowed in 2008 with net new cash flow to all types of mutual funds amounting to $411 billion, less than half the pace seen in 2007. Investor demand for certain types of mutual funds appeared to be driven in large part by deteriorating financial market conditions, especially in the second half of 2008. Stock mutual funds ... industry trends, business articles and survey research
Gary Demaree: Municipal bonds: A little home cooking
Since these bonds are issued by state and local governments, the principles of federalism (remember high school civics?) demand that the interest from municipal bonds is exempt from federal taxation. Although it is generally free from federal taxes, these bonds may be subject to state and local taxation. The popularity of municipal bonds has soared among individual investors as they seek federal tax-free interest to combat higher marginal tax rates. A municipal bond is essentially a promissory note. When you buy a municipal bond, you're lending money to the issuing state or local government. In return for the loan, the ... market trends, news research and surveys resources
Retail Notes: A Simpler Alternative To Bond Funds
are one way to get income from your investments. You may also know they can help you diversify your portfolio since they often move in the opposite direction of stocks. Yet some people might stay away from bonds because they don't understand how these investments work, or the pricing structure has turned them off to the idea. Here we go over retail notes, which often work as a good alternative to more confusing bond funds. Bonds Can Be Confusing With accrued interest , markups, commissions and changing prices, bond investing is not always easy. I n 2003, the National Association of Security Dealers (NASD) issued the results ... market trends, news research and surveys resources


Taxable Bond Investing: Bond Funds or Individual Bonds?
Dec 31, 2004 ... Taxable Bond Investing: Bond Funds or Individual Bonds? Executive Summary For most taxable bond investors, bond mutual funds have a number ... technology research, surveys study and trend statistics
TG-81: Build America Bonds and School Bonds
Investing in our ...
The United States is facing the most severe financial crisis in generations.  Extraordinary challenges require extraordinary action by our government to ensure the economy gets back on track and that millions of Americans get back to work. The American Recovery and Reinvestment Act of 2009, along with the Financial Stability Plan, are critical steps.  In just two months, the Obama Administration, in conjunction with Congress, has enacted legislation to create or save 3.5 million jobs; give a tax break to 95% of working families; and has put forward detailed programs to address falling home prices, frozen credit ... technology research, surveys study and trend statistics
Tax-Managed Investing
With so many choices, the decision to buy a stock or mutual fund is tough enough. However, that decision is just the beginning. Equally or more difficult is the decision of when to sell. Whatever the reason, each sale of an investment has tax consequences. A capital gain or loss is realized and taxes are due on net gains for the year. (For a more detailed look at investment tax basics, see the fall 2000 issue of Financial Review.) Additionally, within a mutual fund, the internal sale of the fund�s portfolio of securities is outside the control of the fund investor. As a result, by simply holding a mutual fund, the investor can ...
Personal Investment & Financial Planning Q`s: IRA, taxable bond ...
I can answer questions on and raise issues clients overlook in the areas of Estate Planning as far as taxes and distribution flow problems, Asset Management as far as appropriateness of assets and allocations for a desired goal and the value a consumer gets for their costs, Tax Planning related to Income and Estates, and Insurance/Annuity questions particularly in light of suitability to the consumer. Experience I became a CPA in 1991 and began offering financial advice in 1992. I am a Registered Investment Advisor which means I sign off on putting clients' interests first in a fiduciary role. Education/Credentials BA in ...
Fast Answers: Investing, Bonds, Municipal. - MSN Money
A municipal bond is a debt obligation of a state or local entity, such as a state highway agency or a local school district. Interest on these bonds is exempt from federal income tax and, if the bonds are issued in your state of residence, from state and local income taxes as well. Because of their tax-exempt status, municipal bonds pay a lower interest rate than taxable corporate bonds. Municipal bonds may be classified as general obligation (GO) bonds, which are backed by the taxing authority of the issuing entity, or revenue bonds, which only have recourse to the project revenues for which the proceeds are used. How do ...