How to Invest in Corporate Bonds: Why Own Actual Bonds Rather Than Funds?

©2019 BondSavvy

Table of Contents

Click on a summary topic to navigate through the video.
Time Slide Summary
0:00 1 Kick-Off
0:56 2 Achieve Equity Upside Without the Equity Downside
2:04 3 The Unremarkable Returns of Mega Bond Funds
3:06 4 My Recent Bond Investment Returns
3:47 5 How I Think Differently About Bond Investing
10:32 6 My Goal for This Presentation
11:01 7 Agenda
12:17 8 Disclaimer
13:34 9 Importance of Becoming a Strong Corporate Bond Investor
16:23 10 Current Investor Asset Allocation
17:59 11 My Bond Returns vs. iShares AGG ETF
18:59 12 Why Own Actual Bonds Rather Than Funds?
20:50 13 Five Myths of Corporate Bond Investing
21:44 14 Myths #1 & #2: An Opaque Market for the Super-Rich
24:27 15 Are You Getting a Fair Price?
29:47 16 Myth #3: You Can’t Beat Low-Cost Funds
31:28 17 Myth #4: Low After-Tax Returns Given Low-Rate Environment. Also, a review of a 54% bond investment return
35:33 18 Interest Rates Are NOT the Primary Driver of Bond Prices
38:17 19 An 8.94% After-Tax Return on a Microsoft Bond
39:57 20 Myth #5: You’ll Get Ripped Off if You Sell
43:46 21 Review of Depth of Book
44:07 22 Advantages of Individual Bonds vs. Bond Funds
47:22 23 BondSavvy’s Value Add
48:18 24 Narrowing Down Bond Search Results
50:34 25 Review of Recent Investment Recommendation
54:19 28 Financial Analysis of Recommended Bond
1:03:13 31 Before you invest…
1:05:04 32 Closing Remarks

Who we work with

BondSavvy believes owning individual corporate bonds can help investors achieve higher returns and better principal protection than bond funds. We make 25 to 30 bond-level recommendations annually for the below client groups. Click a box to learn more.

Individual
Investors

Financial
Advisors & RIAs

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and
Money Managers

Corporate
Treasurers

Corporate Bond Investing 101

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