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Subject:  Re: Your Best Pal, Ben? Date:  9/22/2012  2:32 PM
Author:  trader2012 Number:  34408 of 35877

And if that five-fold partitioning were used, then this is the sort of YTMs I'd expect from each group in today's market:

for the Current
Bond Market

3% Cash-equivalents (e.g., Treasuries, Agencies, and AAA corporates and munis)

5% Defensive (e.g., munis and corporates rated AA to A)
8% Enterprising (e.g., munis and corporates rated BBB to BB)
13% Speculative (e.g., corporates rated B to CCC)

34% Lottery Tickets (e.g., tobacco settlement zeros, i.e., low-cost bonds with highly asymmetric payoffs)

In other words, scale out a Fib series a