UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev | Next
Author: folgore Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 35259  
Subject: Bond hunting Date: 1/16/2012 9:30 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 1
Since the start of the year, I've been looking for a bond to add to my Roth IRA. While searching (in Etrade), for the first time ever, I've noticed a number of European issues. My initial search focused on hi yield corporate grade issues (yield over 7% and S&P rating BBB- and over) maturing before 2030. I ran into the following:

1. Abbey National PLC which was rated Baa1/A (in 2011) yielded 9.3%, sells for 87, and matures 2029. This was a British bank but is now owned by Santander of Spain;

2. Various issues by Telecom Italia, rated Baa2/BBB (in 2008), most yielding just above 7% and selling in the high 90's;

3. Among American issues, there was one Genworth yielding 8+%, rated BAA3/BBB, and maturing in 2021. Similarly rated and yielding 7+% were issues by the Jefferies group, Merril Lynch, BOA, Countrywide.

If sticking to the bottom of investment grade, the two European issues are initially more appealing, but there are European economic woes to worry about. Further, does anyone know whether the yield of foreign bonds would be impacted by currency fluctuations? Any thoughts?

I may be extending my search to include the lower B's as well. What are the rest of you looking at currently?

Thanks,

Sal AKA folgore
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev | Next

Announcements

2013 Feste Award Voting Begins!
Who will win the 2013 Feste Award? Vote now for the Fool that most exemplifies the Fool Community mission of Learning Together!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Tax Strategies

TMFPMarti-Feeling Good
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement