No. of Recommendations: 0
I keep wondering how corporate bonds can sell when they yield less interest than a super safe CD?


Possibly, a couple of things are happening. One, the bonds you're seeing might not be selling. What you're seeing is the very unattractive asking prices and their ask-yields. How many of those bonds are actually selling at those prices? That's what needs to be determined and to a limited extent such info is available at the Investinginbonds website. Enter the CUSIP and you can pull T&S. (Time & Sales).

Two, CD's have limited maturities. I don't remember seeing any that go out longer than five years. If a buyer --such as pension fund-- needs 20 and 30-year maturities --due to their payout obligations-- then they have to pay current market price, which is hugely depressed for a lot of reasons.

But for us small fry, CDs, now, are probably better.

Small fry? Where would you draw the cutoff line?


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