This week on Money For the Rest of Us Plus we discuss how much should one adjust their portfolio if investment conditions turn RED. We also look at the large gains year-to-date for long-term bond funds and what caused it. We also look at how bond managers adjust their portfolios for cash inflows and outflows. Finally, I share some investing facts that are hard to believe. The episode length is 22 minutes. … [Read more...]
MNY103 Plus: Mortgage-backed Securities and More On Peer-to-Peer Lending
This week on Money For the Rest of Us Plus I provide an overview of mortgage-backed securities. What are they and how does one invest in them. We also look at how to evaluate an active fixed income manager. I also answer a question on what happens if a peer-to-peer lender such as Lending Club goes bankrupt. We also take another look at default rates and reasonable expected returns for peer-to-peer lending. The episode length is 22 minutes. … [Read more...]
MNY098 Plus: Who’s Afraid of Bonds?
This week on Money For the Rest of Us Plus I discuss what to consider when investing in a bond ETF or fund. I also discuss the bet Warren Buffet made that an S&P 500 Index fund could outperform hedge funds. The episode length is 21 minutes. … [Read more...]
82: What Assets Return When The Fed Raises Rates
How have various asset classes performed when the Federal Reserve begins tightening by raising short-term interest rates. Photo by Joe Wessells In this episode you'll learn: How interest rates have declined over the decades.What determines interest rates.What are different measures of inflation.How long after the first Federal Reserve begins raising its policy rate have recessions begun.What have stocks, bonds and other asset categories returned one year after the Federal Reserve … [Read more...]
MNY080: MLPs, Bullet ETFs and Laddered Bond Portfolios
This week's Money For the Rest of Us Plus episode reviews the volatile week for master limited partnerships and looks at high yield bullet ETFs and whether they could be used to build a laddered bond portfolio. The episode length is 20 minutes. … [Read more...]
How Bond Supply Impacts Interest Rates
This audio lesson discusses bond supply. Topics covered include: How a below average supply of bonds can suppress interest rates. A review of the new bond supply increase in 2014. When was the last time U.S. government bond supply decreased and why. Why there has not been an increase in mortgage-backed bonds in seven years. Why the supply of bonds needs to increase for an extended period of rising interest rates. The episode length is 7 minutes. … [Read more...]
MNY050 Plus: Measuring Bond Fund Yields and a Closer Look At Closed End Bond Funds
In this week's Money For the Rest of Us Plus episode, I discuss Why there aren't many investment opportunities currently The difference between SEC Yield, distribution yield and yield to maturity How to evaluate a closed end bond fund using BIT and DSL as examples. The episode length is 17 minutes. … [Read more...]
Use of Active Bond Funds
This audio lesson shares why I generally use active funds for bonds but passive funds and ETFs for stocks. The episode length is 6 minutes. … [Read more...]
Bond Portfolio Overview – First Quarter 2015
This essay provides a current overview of the fixed income market, my criteria for allocating to various fixed income sectors and my current bond holdings. … [Read more...]
How Have Bonds Performed Prior To and After The First Federal Reserve Policy Rate Increase
This audio lesson shares the performance of various bond sectors in the three months prior to and the three months after the first Federal Reserve policy rate change. The episode length is 8 minutes. … [Read more...]
