At noon EDT today, BondSavvy presented four new corporate bond investment recommendations during The Bondcast, an exclusive subscriber-only webcast where we review the investment rationale and supporting bond investment analysis for each recommendation. You can now view these latest corporate bond picks by purchasing our investment newsletter subscription.
The investment returns of our prior bond picks have shown how a select portfolio of individual corporate bonds can outperform bond funds and ETFs, and we are excited about our four new recommendations. Subscribers gain immediate access to all 20 current BondSavvy recommendations.
Preview of New Corporate Bond Recommendations
We are providing subscribers with a good mix of risk and reward and issuing-company industries. We continue seeing more interest-rate risk than credit risk and, as a result, have recommended three high yield corporate bonds vs. one investment grade corporate bond. Generally speaking, high yield corporate bonds are not sensitive to changes in US Treasury yields and are an important part of how to profit from rising interest rates.
Issuing companies were in the following industries: manufacturing, entertainment, financial services, and communications.
Figure 1 provides a summary of our new corporate bond recommendations, including each pick's bond rating group, price, YTM, and leverage ratio:
Figure 1: Corporate bonds recommended August 14
|Offer Price*||Yield to Maturity||Leverage Ratio**|
|High Yield Bond 1||99.40||6.59%||3.1x|
|High Yield Bond 2||96.19||5.41%||3.5x|
|Investment Grade Bond 1||94.94||4.34%||1.0x|
|High Yield Bond 3||93.17||8.49%||4.3x|
Owning individual corporate bonds can be a game changer for your investment portfolio, providing strong returns with less risk than stocks. Individual corporate bonds can also provide higher returns, lower fees, and greater investment transparency than bond funds. View our corporate bond returns page to see how investment returns from BondSavvy's corporate bond recommendations compare to the leading corporate bond ETFs.