In Plus episode 266 for the week of August 31, 2019 we explore whether corporate bonds spreads should be lower if overall interest rates are low. In other words, can we observe investor fear by looking at the ratio of high yield corporate bonds yields relative to Treasury yields instead of just the difference between the two yields. We also identify what investors need to consider when investing in a security that can be redeemed early by the issuer. Examples include callable bonds, preferred … [Read more...]
155 Plus: Panic Spreads, Bond ETF Behavior and Living On Distributions
This week April 29, 2017 on Money For the Rest of Us Plus we look at current spreads for commercial paper, LIBOR and bond yields. We answer a member's question about investing money for a housing down payment. We look at whether taking capital gains and income distributions impacts and investor's future returns for stocks and bonds. Finally, we look at the price behavior of ETFs when interest rate changes and look at an unusual phenomenon of how ETF prices act when interest rates are … [Read more...]