The Motley Fool Discussion Boards

Previous Page

Investing/Strategies / Bonds & Fixed Income Investments

URL:  http://boards.fool.com/i-have-to-say-that-seeing-only-one-side-of-this-29253979.aspx

Subject:  Re: EMZ - liquidity now Date:  4/21/2011  8:21 PM
Author:  BenHacker Number:  32721 of 35392

I have to say that seeing only one side of this exchange was a bit baffling so I clicked un-ignore to figure out what was exchanged which was strangely humorous and sad at the same time.

To the original post though, Xot (or AJ... hahahah), I have to say that long term 5.5-6% taxable yields don't seem too rewarding (whether A or AA or not).

There are still a few municipals insured by Berkshire/BHAC (AA+ I believe)) with underlying ratings of A where you can pull down 5.5%+ yields that are tax free with less duration risk than these mortgage bonds, and I think fundamental credit backing that is superior and more liquid in an extreme event than the issue under discussion. (235036PG9 is one example that I have an interest in)

In the exchange traded space, I'm not sure you can do as well, but I think you're definitely short changing yourself at this point if you are getting into these kinds of issues anywhere near par... looking at OTC bonds is a nice thing in conjunction with these exchange traded issues.

Thanks for sharing your spreadsheet over the years by the way Xot.

Ben
Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us