"In my last post I laid out a general framework to determine when to be in and out of the junk bond market. The problem is that much of the time the junk market is neither a screaming buy nor is it grossly overvalued, leaving us without much of a clear signal much of the time. So what is an investor with a risk appetite and an interest in yield to do? Assuming you wish to own junk at all in the “in between” markets, there are two viable options:1. Select a junk bond fund run by a competent manager with a long track record of solid performance.2. Pick your own individual bonds.The first option is beyond the scope of this discussion. Instead, I will focus on how to pick individual bonds."http://lifeinvestmentseverything.blogspot.com/2012/01/dumpst...
I'll be sure to read the link when I get a chance later tonight. But, just my two cents for now, there's always a bond or two out there someplace that looks like a good buy. Just a short while ago I noticed that MeadWestVaCo bonds are still selling below par, and in my humble opinion, are a good risk/reward ratio. On the other hand, I've still got some United Auto Group bonds wich I bought around 87, and are now valued at 103...maybe it was higher...and I don't think those are that great of a risk/reward ratio right now. (When I bought them, that was more of a bet on management (Mr. Penske) than anything else). The above is just my opinion, there are others here that can disect company reports better than me and might have different ideas. But I do believe its a market on bonds, not a bond market, and you can sometimes find a good risk/reward ratio when you would be not want to be in a bond fund.
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |
BATS data provided in real-time. NYSE, NASDAQ and NYSEMKT data delayed 15 minutes.
Real-Time prices provided by BATS. Market data provided by Interactive Data.
Company fundamental data provided by Morningstar. Earnings Estimates, Analyst Ra