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Author: howardgt One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 35392  
Subject: Re: Your Best Pal, Ben? Date: 9/16/2012 4:13 PM
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Charlie,

Bond-investing, any kind, is an easy, easy gig. The downside, of course, is that rewards are commensurate with effort/risk, which is why bond returns are so modest compared to the money that stocks can offer.

The historical returns of Junk bonds are not so modest. According to the table below (from Fidelity), High Yield has outperformed most financial asset classes over the last 3, 5 and 10 year periods. And it has the added benefit of throwing off a significant income stream. That's why I'm here!

YTD7/31 1-Year 3-Year 5-Year 10-Year
S&P 500 Index +11.01% +9.13% +14.13% +1.13% +6.34%
Barclays Capital US Aggregate Bond Index +3.78% +7.25% +6.85% +6.91% +5.65%
Barclays Capital Municipal Bond +5.31% +10.51% +7.59% +6.12% +5.31%
Barclays Capital US Tips +6.01% +9.49% +10.29% +8.36% +7.26%
Merrill Lynch High Yield +9.09% +7.19% +14.54% +9.45% +10.54%
MSCI All World ex US +4.34% -12.04% +4.31% -4.15% +8.16%


As for a collaborative searching effort, I have mixed feelings.
No problem, I really didn’t mean collaborative searching (I’m not into group activities). I just thought something could be gained from comparing portfolios. But it’s probably best we do this offline because I don’t think too many others here are interested in individual issues and it’s quite a pain for me to reformat my spreadsheet data for listing on these boards.

FYI, I find that Fidelity quite often has a larger (and better) selection of bond offer prices compared to Etrade (although they don’t seem to list as many issues). I think FIDO also uses the Knight Bondpoint platform as well as Bonddesk. They have upgraded their search software over the past year and it is quite good now. And they have knowledgeable fixed income people to talk too. Fidelity is now my primary bond broker.

Howard
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