No. of 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?


Sal AKA folgore
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