What role do individual corporate bonds play in income investing?

Individual corporate bonds are a crucial component of income investing as they provide yields generally higher than Treasury bonds and muni bonds. Investors can choose from a wide variety of bonds based on their risk tolerance and investment return objectives.

Owning individual bonds helps income investors create a more precise investment plan than is possible with bond funds and ETFs.  When you own an individual corporate bond, you have a contract with the bond issuer to pay you a fixed rate of interest and to return your principal at maturity.  This enables investors in individual corporate bonds to build a reliable income stream, as compared to bond funds and ETFs, whose income streams are less predictable since the underlying holdings can change over time.

A key benefit to BondSavvy's approach to corporate bond investing, is that we seek to complement a bond's income stream with capital appreciation by recommending what we believe are undervalued corporate bonds that can increase in price and achieve strong total returns.