Best Bonds

Best Bonds


One of the biggest challenges investors have is how to select the best bonds out of the thousands that are available.  Luckily, we founded BondSavvy to solve this problem.  During the September 5, 2019 edition of The Bondcast, we presented four new corporate bond investment recommendations, which we preview below.  Subscribe to BondSavvy and gain immediate access to these and all previous corporate bond recommendations.  Click here to see the value of a BondSavvy subscription relative to the low fees we charge. 

There has been a tremendous bond market rally in 2019, which has made bond bargain hunting more difficult than it has been.  Investment-grade corporate bonds are impacted by changes in Treasury bond yields, as these corporate bonds trade off a spread to their benchmark Treasury.  As a result, when Treasury bond yields plunged during 2019, the yields of investment-grade corporate bonds fell, which drove a rally in investment-grade corporate bond prices.  

Finding value in corporate bonds is all about being selective.  It's finding a select number of bonds that are compelling values relative to other bonds in the marketplace.  This is what BondSavvy does, and we believe our four recommended corporate bonds have opportunities to increase in value and achieve strong total returns.

Please see previews of our recommended bonds below:

 
Industry
 
YTM*
Leverage
Ratio**

Rating
Bond 1           Freight & Logistics 6.77% 3.4x High-Yield
Bond 2 Natural Resources 5.19% 0.7x Investment-Grade
Bond 3 Luxury Retail 4.70% 1.0x Investment-Grade
Bond 4 Paper & Forest Products      5.69% 2.5x High-Yield

* Based on top-of-book offer prices displayed on Fidelity.com September 5, 2019 at 9:00am EDT.

** Source: BondSavvy calculations and company SEC filings. A leverage ratio is the company's total debt as of the most recently reported quarter divided by the company's EBITDA for the trailing 12-month period.

 

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