N*C
发帖数: 1987 | 1 CA? I thought they are going to bankrupt.
citi's debt that matures in 2016 is rated A by S&P. yield 4.82%
state of CA in similar maturity is rated A-, yield 5.27%.
I guess market values these bonds quite efficiently. hard to find free lunch.
For tax saving purposed, some municipals are better choices. |
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p*****y
发帖数: 529 | 2 if you don't consider credit risk, bond value does revert to par when
getting close to maturity. But I don't think most bond traders/retail
investors manage their portfolio in such a way that they will almost always
hold bond to maturity. Instead, they trade in and out the market. Bond
trades do so because they want to beat the market. Retail investors do so
because they need liquidity. Only if you pick out single bond to match each
of your liabilities, you can be isolated from interest rate ris... 阅读全帖 |
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p*****y
发帖数: 529 | 3 zero coupon bond has the max duration among bonds for the same maturity
because all cashflow will be paid at maturity (the most distant future). |
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m****u
发帖数: 229 | 4 EDV’s report says it has a “Net Investment Income” and a Net Realized and
Unrealized Gain on Investment”.
There is a dividend from the net investment income and Distributions from
Realized Capital Gains. I think the two above together are the 4.xx%
dividend that an ETF share holder received.
Here is an example that I came up with.
I go buy a strip at $98, when it matures, it will be $100, if I hold it all
the years until it matures, I will have $100-$98=$2 on income which is a
type of interest ... 阅读全帖 |
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p*****o
发帖数: 1285 | 5 To make no-coupon bonds, the treasure bond (or whatever else) is split in
two: one is the principal, the other is the coupons. These two parts are
then made into two no-coupon bonds and sold separately. The principal bond
can not make any dividend distribution. All incomes must be capital gain
due to the bond price change even if it's sold at mature. The coupon bond
works similarly, but more like a bond fund with a series of mature dates.
Since neither bond carries any coupons, I still can... 阅读全帖 |
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S**C
发帖数: 2964 | 6 Because the way TIPS are structured, the terminal payment is increased
throughout the life of the security (OK, assuming CPI-U is always positive),
which ensures TIPS will have greater duration than traditional treasuries
of equal maturity, thus more sensitive to interest rate changes.
TIPS is a better diversifier, yes, but I will only be interested in it if
the real rate is above 2%, preferably 3%.
Prior to maturity, the accrued principal of a TIPS can go below the face
value.
it is better com... 阅读全帖 |
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S**C
发帖数: 2964 | 7 Yes, coupon rate. It would be nice to have CPI-U + 3% with little risk if
one intended to hold it to maturity.
You are right, TIPS is better for holding to maturity. I generally stay away
from TIPS MFs or ETFs.
3%
would expect the "normal" (although I start to lose the sense of what is
normal lately ^-^) short term rate will be around 2-3%. Or you are actually
refering to the
suit |
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d*****z
发帖数: 114 | 8 用十分钟给linkedin估一下值。只算到数量级，very very rough.
assumptions:
1. target market for US:
a: total workers in US 100M
b: 20% will use linkedin (most low level jobs will never need linkedin)
c: people change job every 10 years
d: average employer'd pay $1,500 for every qualified hire
->$3Billon per year from US when the marekt is relatively mature
2. worldwide market:
2 x US market (considering extensibility across border, lower than google
, close to priceline)
->$6B worldwide
3. market sha... 阅读全帖 |
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s********n
发帖数: 1962 | 9 google 'bond ladder'.
The idea is to enjoy the higher yields from long-term bonds yet always
have some bond mature soon so not lose liquidity. It pretty much assumes
that you'll hold all bonds to maturity.
each |
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y****i
发帖数: 778 | 10 If you have fidelity account, go to trade->trade fixed income->if you know
CUSIP #, put in, otherwise -> search inventory->Municipal bond. If you want
new issue, click and participate IPO, no fee. Otherwise->Secondary-> put
maximum maturity date, like 01/2025, click all bond tier, call protection,
click No on zero coupon if you don't want (higher yield but no payment until
mature), select all on ratings, AMT no if you hit AMT, Fed tax exempt yes,
and click all for others. Finally, ask minimum y... 阅读全帖 |
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y****i
发帖数: 778 | 11 View Results as Table give you better comparison than Graph, and choose your
state if you don't want to pay state tax, otherwise all states (better
choice for higher yield and if you don't know how long you stay on that
state). To choose a bond with insurance like FSA/AGM, MBIA/FGIC or AMBAC,
you need to click "overview" each bond to check or there's a different
between Rating and Underlying Rating. If you want to sell the bond before
mature, click "price and performance" and View Recent Trades ... 阅读全帖 |
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y****i
发帖数: 778 | 12 You can choose which individual bond to sell by yourself if DIY to earn
capital gain plus interest. If the market price is lower than your purchase
price, you can hold until maturity to earn a fixed income. In any case, you
won't lose money. If you give your money to a bond fund, basically you don't
have control on your own money. For a long term investment, even 0.25% fee
plus roll cost will have significant impact. However, if your need the money
as liquid as a stock or corporate bond and your... 阅读全帖 |
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y****i
发帖数: 778 | 13 If you have fidelity account, go to trade->trade fixed income->if you know
CUSIP #, put in, otherwise -> search inventory->Municipal bond. If you want
new issue, click and participate IPO, no fee. Otherwise->Secondary-> put
maximum maturity date, like 01/2025, click all bond tier, call protection,
click No on zero coupon if you don't want (higher yield but no payment until
mature), select all on ratings, AMT no if you hit AMT, Fed tax exempt yes,
and click all for others. Finally, ask minimum y... 阅读全帖 |
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y****i
发帖数: 778 | 14 View Results as Table give you better comparison than Graph, and choose your
state if you don't want to pay state tax, otherwise all states (better
choice for higher yield and if you don't know how long you stay on that
state). To choose a bond with insurance like FSA/AGM, MBIA/FGIC or AMBAC,
you need to click "overview" each bond to check or there's a different
between Rating and Underlying Rating. If you want to sell the bond before
mature, click "price and performance" and View Recent Trades ... 阅读全帖 |
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W*****7
发帖数: 830 | 15 I could never understand how they distinguish capital gain and interest when
you buy/sell the muni bonds in the secondary market.I think it is quite
complicated. Just give some examples here:
If I buy 5% coupon rate muni bond with a price at 108$, then sell it before
maturity at price 110$/106$. Is the 2 dollar counted as capital gain/loss?
or if I buy 0% coupon rate muni bond with a price at 58$, then sell it
before maturity at price 68$. Is the 10 dollar counted as capital gain? or
part of the... 阅读全帖 |
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y****i
发帖数: 778 | 16 The broker like Fidelity will adjust your cost basis monthly based on the
yield. Like I bought a zero coupon bond at 34.76$ at May 24, currently the
cost basis is $35.39$. If I sell it now at $39, you have capital gain $39-$
35.39-$0.1(consider the fee $1 per 1000$ par value bond), the rest $35.39-34
.76=0.63 will be your tax exempt interest. If you buy the bond with premium
like your first case, the cost basis will also be adjusted monthly to a
lower value, so the $108 will be like $107.xx next... 阅读全帖 |
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y****i
发帖数: 778 | 17 No, discount muni bonds are more attractive because you will avoid losing
money if the issuer call back earlier than maturity. Most bonds have call
protection if less than 10 years from new issue, but under some conditions
some bonds can still partial call. It will count as capital gain if you hold
it to maturity, but for investment, capital gain pay tax still better than
lose money to claim capital loss.
subject
capital |
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y****i
发帖数: 778 | 18 Yes, zero coupon will give you higher YTM, but market volatility is also
higher. If you want to sell your bond before maturity, I do not recommend
zero coupon bond because the spread between the bid quote from the broker
and market price will be too large. Only you are 100 percent sure that you
don't need that money for a very long time till the maturity, then you can
buy some zero coupon bond. Currently I have about 10 percent zero coupon
bond in all my muni bond holdings, and usually they shou... 阅读全帖 |
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y****i
发帖数: 778 | 19 Muni bond with monoliner insurance, 4-4.8 percent yield and federal tax free
, pay interest every 6 month. If you consider zero coupon bond (no interest,
return you face value till maturity, you pay 45-48$ for 100$ face value as
15 year mature bond), the yield can be higher as 5-5.5 percent. If you buy a
muni of your state or Puerto Rico, it will be both federal and state tax
free. |
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y****i
发帖数: 778 | 20 The bond return $100 principal to you and no more interest/yield is counting
. All bonds go back to $100 face value when mature or called before maturity
if no call protection, that's the end of this bond. |
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y****i
发帖数: 778 | 21 Yes, it still makes little money but not worth it. You need to look at
either higher yield or longer term.
Coupon is the interest paid to face value, $100, yield is the "real" return
of bond if you hold it until maturity. If you sell the bond before maturity,
you will have capital gain or loss just like stock.
the
585
the
the
interest |
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y****i
发帖数: 778 | 22 Buy tax free muni bonds and set up bond ladder to have monthly cash flow
from semiannually individual bond payment. If you have a kid, buy different
continuous maturity year zero coupon muni bond for his/ her four year
college tuition. Like you have two kid, 6 and 2 year old, you can buy a zero
coupon tax free muni bond of 11-14 year maturity for the big one and the
other of 15-18 year for the little one. The yield is 5-6 percent, tax free,
if bonds with AGM/ FSA insurance, guarantee double yo... 阅读全帖 |
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y****i
发帖数: 778 | 23 You can try zero coupon muni bond which is tax free, 5-6 percent yield for
10-16 year maturity, double your principal in 13-15 year. Like your child is
6 year old now, You can put same amount for 11,12,13,14 year maturity for
his/her 4 year college tuition. |
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y****i
发帖数: 778 | 24 Interest就是利息，不包括你通过市场买卖差价赚到的。municipal bond 都是半年发
一次利息，公司债券大部分也是，少数是按月发利息。capital gain就是你买卖价格扣
除手续费后还有赚的部分，和股票一样。到期债券就还本了，不存在二级市场去交易到
期的债券，所以也没有交税一说。most bonds have face value 100$, if you buy in
secondary market lower than 100$, then the difference between your purchase
price plus transaction fee and face value will be the capital gain upon
maturity. In any case you sell the bond before maturity below your purchase
price, you can also claim capital loss. |
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y****i
发帖数: 778 | 25 If the stock price going down, the div yield can not cover capital loss. If
this bond market price going south, bond holder can hold it till maturity to
have garanteed 6% return unless it defaults. If this bond price going up,
you can sell it before maturity to have both capital gain and interest. |
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y****i
发帖数: 778 | 26 The best for individual bond is that you don't need to hold it to maturity
if the market price is going up, but you have the right to keep the fixed
income until maturity if the market price is lower. I guarantee you will
have better chance to beat either stock or real estate in the long term run
because there is no negative return.
know
years |
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y****i
发帖数: 778 | 27 http://en.wikipedia.org/wiki/Bond_valuation
If you do not consider compound interest, make it simple, yield = (face
value 100$ + coupon interest) / bond market price. The yield is lower than
coupon rate if the bond price is more than 100$.
Fidelity showes yield to maturity or yield to call based on compound
interest. You don't need to know how to calculate, just remember yield is
the true return if you hold it until maturity, not the coupon rate. |
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y****i
发帖数: 778 | 28 I only have 20-30 min in the morning 7-8AM PST to check. My criteria is >3.5
% for tax free semianually interest muni if maturity less than 5 years, >4%
for 10 years or less, > 4.5% for 11-15 years. For zero coupon tax free muni,
each add 0.5% yield. For taxable muni or corporate bond, each add 1%. For
taxable zero coupon, each add 1.5%. You can save each condition and check it
quickly, but still need to check details before buying such as yield to
worst(call), yield to maturity, recent trade ac... 阅读全帖 |
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y****i
发帖数: 778 | 29 Municipal bond with AGM or MBIA insured. If you do not need semiannually
interest payment, you can consider zero coupon bond. If your tax bracket is
lower than 28%, you may also consider taxable muni bond like BAB. For
example, I bought CUSIP 204712FF5 at $71.93 with maturity date 8/1/2018 and
204712FG3 at $69.17 with maturity date 8/1/2019 last month. They will return
$100 face value in 5.5 and 6.5 years, equal to 6% and 5.73% annual yield,
and both are AGM insured. |
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y****i
发帖数: 778 | 30 Municipal bond with AGM or MBIA insured. If you do not need semiannually
interest payment, you can consider zero coupon bond. If your tax bracket is
lower than 28%, you may also consider taxable muni bond like BAB. For
example, I bought CUSIP 204712FF5 at $71.93 with maturity date 8/1/2018 and
204712FG3 at $69.17 with maturity date 8/1/2019 last month. They will return
$100 face value in 5.5 and 6.5 years, equal to 6% and 5.73% annual yield,
and both are AGM insured. |
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s********e
发帖数: 13 | 31 感谢上面的建议，我回头去看看Mini Bond。如您所说，我确实是给3岁的女儿提前准备
学费。如果去买Bond的话，基本上都会设定在16年后，也就是2018/2019年的maturity
。有个问题是，因为每年都会给她买，是盯住某一只Mini Bond，向定投基金一样的去
买呢（风险是Bond Price可能会变，相应的YTM也会变）；还是每年都去看市场上有哪
些2018/2019 maturity的Bond，每年去卖不一样的Bond？
板上有不少讨论都是关于准备退休/大学的，不知道之前的同学们是不是对这个问题已
经有答案了？ |
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y****i
发帖数: 778 | 32 1st is a PR bond which facing downgrade to junk bond risk, I will wait until
May or June after new issue PR bond set up the benchmark for the old bond.
2nd is the Yankee Stadium revenue bond which has 33 year to maturity, the
term is too long for me because the interest risk is too high. If you have
the speculation that bond yield will go lower, then you can give it a trial.
Otherwise I recommend look for a bond with 12-24 year maturity. |
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a***n
发帖数: 328 | 33 谢谢你的答复！再接着请教两个问题。
trial.
如果准备一直持有到maturity，这个风险还存在么？
如果考虑maturity之前出售，风险是不是指价格会下跌？
对于以获取coupon为目的的中短期持有，购买时应该关注哪些指标呢？
如果能推荐并点评一两个New York State的muni bond就更好了：）
十分感谢！ |
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y****i
发帖数: 778 | 34 If you hold it to maturity, your return is fixed. Yes, the risk is that you
need to sell the bond before maturity and the market price is lower. Ask
price need to be lower than 3rd party price for buying muni bond. I don't
have any NY bond now because I am in CA. NYC mta bond usually will give you
higher yield than GO bond because the rating is A2, and more stable than
other revenue bond because mta can raise price if they have cash flow
problem. |
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y****i
发帖数: 778 | 35 You can start to accumulate cash for short term individual corporate or
taxable muni bond with 5-6% yield and less than 7 year maturity , 4-5% yield
tax free muni bond with insurance and less than 12 year maturity. Both of
them will beat most bond fund which put too much weight in Treasury bond and
agency bond.
http://www.mitbbs.com/club_bbsdoc/Bond.html |
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y****i
发帖数: 778 | 36 You can buy taxable muni bond in Roth IRA or IRA. For example, CUSIP
204712FK4 give you 5.75% yield with 59.59 ask price, pay you $100 at 8/1/
2022, with AGM insured. No matter what the market price, your return is
fixed if you hold it to maturity. However, this is a so so deal because the
ask price is higher than 3rd party price and I bought 204712FG3 at 69.18
with 5.73% yield but mature at 8/1/2019, 3 year less. The time was 1/16/2013
when treasry bond yield was much lower than current. Thus f... 阅读全帖 |
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y****i
发帖数: 778 | 37 Yes, unless both the bond issuer and AGM bankrupt.
You are talking about the liquidity risk which is very important for bond.
No penalty like early redemption as CD. But buying a callable bond with
premium will have a loss if the issuer call it back earlier by par value.
General speaking, corporate bond is better than municipal bond for liquidity
because you can sell it online like stock. However, you lose the
protection by the monoliner insurance.
For example, Cliff natural resources (CLF) has... 阅读全帖 |
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h*********g
发帖数: 43 | 38 投资菜鸟，刚刚开始熟悉各种投资的方式，看过了Money Market Fund 和 CD的相关东
西之后，在fidelity上简单查了查，有几个问题请教：
比如我刚才看到的这两个MMF
Yield Exp Ratio Net Yield
Fidelity Treasury Only MMF 0.01% 0.42% -0.41%
Fidelity Institutional MM Prime 0.14% 0.18% -0.04%
这么一看，short term MMF的yield还赶不上Expense ratio，那投资这个不是会lose
money吗。。
关于CD，如果我比较这两个
Coupon Freq Yield Mature 5yr Yield
ALL BAND 0.2 1 mon 0.2 1mon 1.1... 阅读全帖 |
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X****r
发帖数: 3557 | 39 Not really.
If you buy bond at issue and hold 30 years, you only receive interest (
coupon payment) until maturity, at which point you get your principal back
plus discount; while on the other hand, you have to pay back principal
continuously during this 30 years period for your mortgage, in addition to
the interest.
In other words, even disregard other factors, the effective maturity of your
30 year mortgage is much less than 30 years. |
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y****i
发帖数: 778 | 41 1) F and G has higher risk than GO, Series H has lower risk because CSU can
always raise tuition if state cut budget. Usually they are not insured, and
in history CA never default any state PWB or GO bonds.
2) The interest coupon and yield will be determined by 9/30 or 10/1,
different with how many years to maturity.
3) If coupon rate is higher than yield, you need to pay premium. If coupon
rate is lower than yield, you will have a discount. If they are the same,
you pay exactly par value. Usual... 阅读全帖 |
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r****m
发帖数: 1204 | 42 If you still work with that broker, you can ask him to recommend some good
high yield corp bonds with maturity 4-5 years, you just hold them to
maturity. He or she will earn little commission, but will do it to keep you
as a future client.
I can't really think of any other "better return but safe" options.
看看其他人有什么建议吧. |
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D*****t
发帖数: 558 | 43 two major types of risks are associated with bond investing, credit risk
and interest rate risk. When the borrower defaults, investors lose their
principal. This is credit risk. When interest rate rises, bond prices go
down. This is interest rate risk.
If one holds an individual bond to its maturity and get repaid principal in
full amount, then the interest risk is non-exsitent. problem is the bond
issuer may go bust and default its debt. Such credit risk is always
associated with individual bo... 阅读全帖 |
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w***n
发帖数: 1519 | 44 Market being efficient doesn't mean investors focusing on a narrow subset of
securities are sufficiently rewarded for the risk they are taking; neither
does it mean investors should just go ahead and invest in anything because
hopefully it is "fairly" priced.
I'm sure you are an expert on this particular investment vehicle. So, I'm
all ears. Please enlighten me:
- When you say "Not guaranteed, but almost" (IMO very misleading), it sounds
like a sure thing. Then why preferred stocks have a yield ... 阅读全帖 |
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w***n
发帖数: 1519 | 45 That's right. Another way to look at the loss of holding the bond to
maturity is to see the *reduced income* compared to what could have been
earned if one bought the bond after the interest hikes using the same amount
of principal.
When the bond price drops, you either take the capital loss and move on or
hold to maturity knowing that you're taking the income loss (subtle, but
real). One way or the other, the damage is done.
the |
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h**o
发帖数: 548 | 46 1）请问在 vanguard选择买哪种 fund，一般看什么指标？除了 expense rate, 种类(
large/small, growth/value, US/international)外？SEC, yield, 和追踪程度什么
的要看吗？如果要看的话，怎么决定哪个好呢？ 还是说不用看这些history
performance?
2）Bond fund 没有maturity 这句话怎么理解？那岂不是maturity越长的bond越好因为
interest rate 高? 至于volatility， 要是buy and hold的话，反正也应该不介意的.
怎么dummy 书上说买short-term bond fund好呢？
3）现在stock, bond, money market 是不是都不大好？那我该不该每个月投些钱呢？
投了不是明知道会亏吗？我知道dollar-cost avg. 实质是好坏折衷。 |
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发帖数: 1 | 47 看了这么多讨论，我来说点可以实际操作啊。
如果有一笔是较小资金量，个人brokerage账户的。10万20万及以下的，个人income税
又高。不想买股票或者股票已经买够了。可以买几个muni就好。要买没有federal tax
的。注意看清楚了。
如果是401k的钱，通常是不可以买单个bond, 也通常没有defined maturity bond
fund的选项的。公司提供的bond fund通常是固定duration的。这样的bond fund在长期
升息环境下本金是一定要跌的。短期可以起起落落，但是债券是个30年的牛市末期，未
来可能要跌很多很多年。长期来说，不推荐在401k里面买duration固定的bond fund。
如果是IRA或者是Roth IRA的钱。倒是可以考虑defined maturity bond fund或者
laddered bond portfolio。但是如果钱太少不值得折腾。如果你有个好的broker/
advisor专长bond的，可以帮你推荐几个bond就好。个人投资者几乎很难找到好的bond
deal，而且好deal转瞬即逝。
最适合lad... 阅读全帖 |
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w******j
发帖数: 185 | 48 现在账户里大部分都是股票，想留个几万放着，但是不知道放到哪里。
最好能有个5%的return，没有那么高也无所谓，最主要是可以随时变现。
savings account都太低了，偶尔能有高点的都太麻烦了。。。
本来想买munis bond，但是maturity都挺长的，然后interest一直涨。
请问有什么bond（一年的maturity）或者其他investment 的推荐吗？
求指教，谢谢。 |
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w******j
发帖数: 185 | 49 现在账户里大部分都是股票，想留个几万放着，但是不知道放到哪里。
最好能有个5%的return，没有那么高也无所谓，最主要是可以随时变现。
savings account都太低了，偶尔能有高点的都太麻烦了。。。
本来想买munis bond，但是maturity都挺长的，然后interest一直涨。
请问有什么bond（一年的maturity）或者其他investment 的推荐吗？
求指教，谢谢。 |
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c********a
发帖数: 2829 | 50 When people were misled to believe there would be an offer, but later found
that they were dumb backups,
those pretending mature would say, business is business.
When people got laid off after three weeks in a new job,
those pretending mature would say, that's life.
Now we are talking about RP? |
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