In Plus episode 498, we consider whether to use a financial advisor in retirement. We explore if there is a rule of thumb for when to invest in non-investment grade bonds. We analyze the BondBloxx CCC Rated USD High Yield Corporate Bond ETF (XCCC) Finally, we provide a yield update for the VanEck AA-BB CLO ETF (CLOB) … [Read more...]
452: Beyond Stocks: The Allure and Strategy of Credit Investments
Investing in non-investment grade bonds, leveraged loans, and preferred stocks is potentially more compelling than investing in common stocks at present. Topics covered include: Why Howard Marks told institutional clients to sell stocks and buy high-yield bonds instead The contractual agreements comprising bonds, leveraged loans, and preferred stock give them an advantage relative to common stocks How preferred equity exhibits attributes of both bonds and common stocks What … [Read more...]
418 Plus: Mortgage REIT Preferred Stock, Debt Ceiling Standoff, and Fallen Angel Bonds
In Plus episode 418, we review the current status of mortgage REITs and analyze the mortgage REIT preferred stock David recently purchased. We consider whether investors should move assets out of cash until the debt ceiling standoff is resolved. We consider options the U.S. Treasury has to meet its obligations including minting a trillion-dollar coin. Finally, we look at two ETFs that invest in bonds that have recently been downgraded to non-investment grade from investment grade. … [Read more...]
176 Plus: Investing In Utilities and Reviewing An Active Bond Fund
This week October 13, 2017 on Money For the Rest of Us Plus, we explore the merits of investing in the utilities sector as an income strategy. We also analyze the Osterweiss Strategic Income Fund against a backdrop of low expected returns for non-investment grade bonds. Finally, a word of caution regarding the tax treatment for crowdfunded real estate investments. … [Read more...]
MNY093 Plus: High Yield and Asset Class Return Assumptions
This week on Money For the Rest of Us Plus I review recent writings from two of my investment mentors Rob Arnott and Ben Inker. Specifically, we will discuss high yield bonds, the challenges with underperforming asset classes and reasonable asset class returns going forward. The episode length is 22 minutes. … [Read more...]
MNY087 Plus: Dollar Cost Averaging and Credit Risk
This week on Money For the Rest of Us Plus I answer Hub member questions regarding investing large lump sums and whether bank loans (i.e. floating rate bonds) are a good substitute for investment grade bonds in order to protect against rising interest rates. The episode length is 16 minutes. MNY087 Plus View and Listen To Other Plus Episodes Audio Download Download the audio file Transcript Welcome to Money For The Rest of Us Plus, this is the companion episode to Episode 87, Is This … [Read more...]
