First, the Great Depression was finally becoming faint memory, as was its record of destroying stockholders while handing deflationary gains to fixed-income bonds.
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Things like that could be something as simple as non-traded real estate investment trusts, or secured floating-rate income, as opposed to fixed income or bonds.
Read Richard Lehmann and pocket 8% yields and big capital gains in fixed-income with bonds, convertibles, preferreds and MLPs.
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Click here for instant access to Forbes-Lehmann Income Securities Investor for dozens of fixed-income buys in corporate bonds, MLPs, income trusts preferreds, and convertibles.
For fixed-income investments like bonds and Treasury bills, inflation is of course a huge threat.
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Still, with the Federal Reserve buying bonds and pushing down yields on all fixed-income investments, investor appetite for junk bonds may continue unabated even if the opportunity for price appreciation is limited.
Lehmann has authored numerous articles on bonds and fixed income investing both in financial columns and book form.
The division underwrites, trades, and distributes fixed income securities and derivates like bonds.
Insurance companies often have long term liabilities that they wish to hedge, which require low risk and predictable cash flows and fixed income securities such as government bonds that offer a predictable stream of payments by way of interest and principal payments.
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As higher-yielding bonds mature, investors wanting to reinvest into fixed-income will have to choose between lower-yielding bonds or bonds with worse credit quality.
For a country like Portugal, that will turn many US fixed income investors off from Portuguese government bonds.
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Government bonds pay a fixed income each year, so the higher the price, the lower the yield to new buyers.
The majority of these investments are in fixed income securities like government and corporate bonds and the remainder in equity securities, mortgage loans, policy loans and other investment securities.
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For not all bonds are created equal, and investors may be unwittingly increasing their exposure to equity risk by allocating portions of their fixed income exposure to high-yield bonds, which behave much like equities.
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We looked back over the period stretching from January 1, 1997 to February 29, 2012 to see how movements of stocks, Treasuries and lower-grade fixed income investments like high-yield bonds and bank loans, related to each other.
FORBES: Are Your Bond Holdings Raising Your Portfolio's Risk Profile?
There could be a provision that the mix of equities and fixed-income securities in each account would change over time: As one got older, the portion of funds invested in fixed-income instruments, such as bonds, would increase, thereby reducing stock market exposure.
That leaves fixed income, and U.S. bonds have zero returns, so where do you park a million dollars without losing it?
Strangfeld first eliminated the struggling institutional fixed-income unit, which underwrote corporate bonds.
Hence most investors flocked to the next best thing: fixed-income instruments such as investment grade bonds, U.S. Treasuries and even high-yielding junk bonds.
The first is a very good treatise offered by the American Association of Individual Investors (AAII) called How to Buy Individual Bonds: A Fixed-Income Toolkit.
That's because over half the investment portfolios of both Ping An and China Life are in bonds and other fixed-income assets, while only 10% is in equities.
In many cases, pension funds are buying government bonds because they need fixed income instruments and the near-collapse of the mortgage-backed securities market has eliminated that supply.
While allocations to bonds may vary based upon market conditions and investor objectives and risk appetites, bonds (or other fixed income-oriented strategies) can typically find a home in most investment portfolios throughout most market cycles.
They cannot bear to risk such capital losses again, so they stay away from equities and over-weight their portfolios with Treasury bonds and other conventional fixed income securities where they naively believe they cannot lose principal.
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It can be done, however, often through the same broker you are using for trading stocks. (Check with your brokerage firm.) A 2008 article in the AAII Journal, How to Buy Individual Bonds: A Fixed-Income Toolkit, provides suggestions on how to get started.
Stable currencies continue to make local currency bonds a top pick for fixed income fund managers looking for yield, volume, and liquidity.
The mix of your investments should include publicly traded fixed income and equity assets such as investment grade bonds, preferred stock and common stock.
Rising inflation means rising interest rates, and that means more fixed income investors pouring money into Brazilian local government bonds that pay well over 11% annually.
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That security is why people on a fixed income rather put their savings in US government bonds and get 3%, instead of putting half their life savings into a bond like the 10 month old, higher yielding, Oppenheimer Emerging Markets (OEMAX) mutual fund.
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Since then, the ICBC broker-dealer in the U.S. has focused on clearing trades of Treasury bonds and other types of fixed-income securities for clients.
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