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Corporate Bond Investing Tips and Information

The Advantage of Bonds Being Priced off Par Value
Posted by Steve Shaw on December 02, 2021

Many investors may hear the term "par value," shrug, and ask "What's the big deal?". While the concept is straightforward, the fact that individual corporate bonds trade as a percentage of their par value creates a...Read more

What Corporate Bond Research Does BondSavvy Provide?
Posted by Steve Shaw on June 15, 2021

BondSavvy provides CUSIP-level corporate bond research, which includes between 20-25 new corporate bond investment recommendations each year.  Many individual investors and investment advisors do not have the time to read SEC filings and listen to company...Read more

How To Calculate Accrued Interest
Posted by Steve Shaw on February 16, 2021

Bond investors are generally familiar with the term 'accrued interest;' however, many may not know the exact accrued interest calculation that determines the accrued interest buyers pay -- or sellers receive -- as part of a...Read more

How To Calculate and Use Leverage Ratios
Posted by Steve Shaw on August 27, 2020

We calculate leverage ratios to assess default risk and relative value of corporate bond investments.  Leverage ratios tell us how much debt a bond issuer has relative to its cash flow, or EBITDA, which is a...Read more

What Are Credit Spreads and How Do They Work?
Posted by Steve Shaw on April 23, 2020

Credit spreads, also known as Treasury spreads, are the difference between a corporate bond's yield to maturity ("YTM") and the YTM of a US Treasury bond or note with a similar maturity date (the 'benchmark Treasury'). ...Read more

Where To Buy Bonds
Posted by Steve Shaw on April 21, 2020

Many investors still do not know where to buy bonds.  Many still believe you call up your broker and let him tell you what bonds he has available and the price for each bond.  Luckily, for...Read more

What Is BondSavvy Live?
Posted by Steve Shaw on April 21, 2020

BondSavvy Live is a bond investing education webcast exclusive to BondSavvy subscribers, which we host three to four times each year.  Prior to each edition of BondSavvy Live, BondSavvy subscribers submit corporate bond investing questions to BondSavvy...Read more

How the Bond Ratings Scale Impacts Bond Prices
Posted by Steve Shaw on April 19, 2020

Bond ratings scales represent the opinion of credit rating agencies as to the likelihood of a bond issuer defaulting, but they do not tell investors whether a bond is a good investment.  Investors need BondSavvy's investment analysis...Read more

How To Do a Fidelity Bond Search
Posted by Steve Shaw on December 17, 2019

Investors who buy bonds online can do Fidelity bond search and execute trades with the click of a few buttons.  Bond investing has come a long way over the last 20 years, and Fidelity has been...Read more

What Corporate Bond Returns Does BondSavvy Seek To Achieve?
Posted by Steve Shaw on November 19, 2017

Many investors believe corporate bond returns are limited to a bond's yield.  They build ill-conceived bond ladders, hold bonds to maturity, and then do it all over again.  Investors who build bond ladders and hold bonds...Read more

Why BondSavvy Is Better Than a Bond Investment Newsletter
Posted by Steve Shaw on November 19, 2017

Many bond investment newsletters publish lists of hundreds of bonds and leave it up to subscribers to weigh the risk and potential returns of each investment.  Other bond newsletters focus on all income products, including preferred...Read more

How BondSavvy Is Better Than Institutional Credit Research
Posted by Steve Shaw on November 19, 2017

While BondSavvy founder Steve Shaw is the leading expert in recommending individual corporate bonds to individual investors, he is not the only fixed income expert.  Major investment banks have fixed income research departments, which provide a...Read more

What Are Some Corporate Bond Basics?
Posted by Steve Shaw on November 19, 2017

Bonds are debt obligations of the issuing entity.  There are many types of bonds, and a good way to distinguish them is based on the word that comes immediately before the word "bonds."  For example, Treasury...Read more

What Role Do Individual Corporate Bonds Play in Income Investing?
Posted by Steve Shaw on November 19, 2017

Individual corporate bonds are a crucial component of income investing, as they provide yields generally higher than Treasury bonds, muni bonds, and stocks.  While the total return opportunity for corporate bonds can be less than stocks,...Read more

What Credit Analysis Does BondSavvy Conduct When Evaluating Investments?
Posted by Steve Shaw on November 19, 2017

BondSavvy uses credit analysis to identify undervalued corporate bonds it believes can achieve higher investment returns than the leading bond funds and ETFs. To evaluate potential corporate bond investments, we must understand how bonds are priced...Read more

What Are Some Advantages of Corporate Bonds?
Posted by Steve Shaw on November 19, 2017

There are many advantages of corporate bonds relative to other investments.  Individual corporate bonds offer investors strong returns but with less downside than stocks.  They offer greater transparency than bond funds and ETFs, as you know...Read more