In Plus episode 486, we review how to estimate expected returns when a fund or ETF holds callable bonds. We consider two questions from members worried about high valuations for the U.S. stock market. We discuss the long-term viability of Robinhood. Finally, we discuss ways to reduce the tax headache of owning cryptocurrency. … [Read more...]
437 Plus: Federal Home Loan Bank Bonds and an Advantage of Closed-End Fund Premiums
In Plus episode 437, we explore the history of the 90-year-old Federal Home Loan Bank, and why its bonds can be attractive to individual investors. We also explore how closed-end funds that sell at a consistent premium to net asset value can pay a higher dividend, partly funded by issuing new shares. … [Read more...]
266 Plus: Yield Ratios, Callable Securities, and SAFE structures for Start-up Investments
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...]
