Does BondSavvy advocate corporate bond trading or corporate bond investing?

Technology has advanced so corporate bond investors can trade bonds and execute at competitive prices.  That said, we do not advocate 'day-trading' of bonds but rather advise holding corporate bond investments for, generally, two to four years depending on how a bond and its issuing company are performing and the upside potential remaining in the bond.  We look to hold bonds for as long as we can maximize the return on that given bond.  While there are thousands of bonds that trade on a given day, there are not thousands - or even hundreds - of 'good' bonds that we believe are undervalued and can outperform.  This is why, if a bond spikes in price a few days after we recommend it, we continue to hold the bond until we believe we have maximized the bond's total annualized return.

A key BondSavvy differentiator is that we believe investors are better served NOT holding bonds until maturity, as this typically reduces returns, especially after a bond has achieved significant capital appreciation.  We therefore carefully study a bond's trading activity and available liquidity prior to recommending it so we know our ability to sell the bond prior to maturity.  

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