We founded BondSavvy in April 2017 because the status quo -- investing in bond funds rather than individual bonds, building bond ladders, and following bond ratings -- does not serve investors well. Our individual corporate bond recommendations have achieved investment returns that have beaten the most popular bond funds and ETFs. We give our subscribers an edge by using the following investment strategy:
We are not just coupon clippers. Rather, we seek to maximize total returns by identifying undervalued bonds that can appreciate in value. Each quarter, we present new corporate bond recommendations during The Bondcast, where we discuss the rationale for each investment and why we believe our recommendations can achieve strong total returns.
View our corporate bond returns page to see how our bond recommendations have beaten the world's largest bond funds and ETFs.
To maximize total returns, we carefully monitor the prices of our recommended bonds and the financial performance of our bond issuers. Each quarter, we update our bond recommendations based on the issuing company's financial performance and the pricing of each bond. We then update each recommendation's buy/sell/hold rating.
When we believe a bond's future return is not compelling relative to other available bonds, we will typically recommend selling such bonds. We typically do not hold bonds to maturity and do not believe in bond ladders as an investment strategy.
The over-diversification provided by large bond funds and ETFs reduces returns and is not needed by many investors.
We are partial to Warren Buffett / Charlie Munger “focus investing,” where we concentrate investments on the best opportunities.
The ability to be selective is one of the biggest advantages of individual corporate bonds vs. bond funds. There simply aren't hundreds of bonds worth owning, but hundreds -- or thousands -- of bonds is what you get in most bond funds and ETFs.
BondSavvy is not a broker-dealer. We select bond investments solely on their merits and provide unbiased investment analysis.
This is in contrast to full-service brokers who hold bonds in their own inventory and then sell you 'their' bonds, earning them fees on the bid-ask spread plus any markup or markdown they charge investors.
We recommend bonds that can achieve total returns higher than bond funds and ETFs.
We update our bond recommendations quarterly to determine if/when an earlier corporate bond pick becomes a 'sell'. We present these updates during The Super Bondcast, an exclusive interactive webcast only available to BondSavvy subscribers.
While there are outliers, our typical holding period for a recommended investment has been one to four years.
BondSavvy is the leading expert for recommending individual corporate bonds to individual investors. We recommend subscribers invest through online brokerages such as Fidelity and E*TRADE to take advantage of their wide bond inventory, competitive prices, and low transaction fees.
While online brokerages have enabled individual investors to transact at prices at or near the world's largest bond funds, investors still have to select among the 9,000 individual corporate bonds available on retail brokerages. Corporate bond ratings do not advise on whether a bond is a good investment, so their value is questionable. BondSavvy is a step up. We take the guesswork out of bond investing by providing thoroughly researched bond recommendations that have beaten the world's largest bond funds and ETFs.
Read our fixed income blog post to learn more about the benefits of investing in bonds online.
We believe, for US investors, our after-tax corporate bond returns compare favorably to municipal bond investment returns. Given the greater financial transparency provided for corporate bonds vs. municipal bonds, we believe it is easier to identify bonds that can increase in price and achieve strong total returns. The after-tax returns of our recommended bonds have benefited from a large portion of our returns being driven by long-term capital gains, which currently receive favorable tax treatment compared to interest income.
Would you trust your podiatrist to give you a root canal? Probably not.
If your financial advisor is not knowledgeable about bond investing, he should not be entrusted with your bond investments. Period. Many advisors put clients into bond funds, but those who do often siphon 40% of the client's return to his brokerage and the fund company through financial advisor fees and bond fund fees.
We spend all our time on corporate bonds. Jack of all trades advisors cannot compare to our level of bond investing expertise and the low cost at which we provide it.