"Where we have seen certain bonds under-perform, it's normally a function of poor credit quality, weak structure or overly aggressive pricing, " he said.
Still, at current prices, investing in certain subprime bonds carries "limited downside and possibly substantial upside, " said Joe Walsh, president of Amherst Securities Group, a broker-dealer that focuses on mortgage debt.
Some employees of the New York company told each other how unfair it seems to them that Goldman is being singled out for betting against the housing market in 2007 as it was pitching mortgage-backed bonds to certain clients.
And the dividend yield is competitive with that of certain risk-free government bonds.
When implementing asset allocation strategies, I have found that it is becoming increasingly more common to utilize exchange-traded products (ETPs) in addition to mutual funds, stocks and bonds, for certain asset classes, styles and sectors.
But Zamft cited European researchers who discovered certain bacteria that can restore such bonds, potentially extending road life and keeping the road crew away.
The ECB can soothe markets by buying bonds, but beyond a certain point such purchases threaten its independence.
ECONOMIST: Eurobonds could restore confidence, but at a cost
Like bonds, preferred stocks are often callable after a certain date.
FORBES: Forget The Dogs, For Rich Income Look To Dow Preferreds
Now that the rating agencies are downgrading CDOs as well as the underlying mortgage-backed bonds that they reference, it seems all but certain that banks and others will be forced into another round of markdowns.
All this for a cost that is certain to be 5 to 10 times the price of stocks and bonds for an indexed ETF, and much worse if one pays the huge price of some of the commodity partnerships being sold by the product manufacturers that have a bit of a conflict of interest on this topic.
Until now these prime dealers could borrow through the Fed's overnight repo program, in which they get cash from the Fed in exchange for certain securities, or through its overnight securities lending program, which trades bonds for bonds.
Unlike with bonds (that do not default), preferred holders cannot be certain of getting their principal back.
FORBES: Do Preferred Stocks Deserve a Place in Your Portfolio?
On the borrowing side, Mr. Frankel suggests the European Central Bank automatically stop accepting a country's bonds as collateral if its budget deficit or government debts exceed a certain level.
While it is indisputable that stocks have beaten bonds in total return over the past century, it is far from certain that they will continue to do so over, say, the next 20 years.
Investors can typically borrow 50% to 95% of the value of the stocks and bonds they pledge, but if the value of those securities falls below a certain level, brokerages often demand investors immediately pay back the loan or pony up additional collateral.
The accounts won't rival 401(k)s in size, but for many people they will become a significant asset, thanks to the miracle of compounding interest. (After a certain high threshold, some people may opt to put a piece of this money into bonds or even stocks.) HSAs will make insurance more affordable for small businesses, which will be a boon for many of today's uninsured.
His commitment that the ECB would intervene in the markets to buy an unlimited volume of bonds on behalf of any euro-zone country requesting this assistance provided that the country adheres to certain conditions drew sighs of relief across the currency bloc.
应用推荐