There’s been abundant discussion from investment pundits in the media the past 4-6 months about the attractive investment potential of corporate bonds due to the historically high basis point spread between corporate, government bonds and historical equity returns.
I’ve received a few questions from readers recently about bonds, specifically:
- How to value a bond?
- Where to find information about them?
- What affects the pricing of a bond?
- What are the risks?
- How do you buy bonds?
- How do you assess a bond?
I’m currently working on a post where I hope to answer the majority of these questions and a few more. There are a number of differences between equity investing (stocks) and debt investing (bonds) that adds to the difficulty of bringing together all of these questions. My hope in the next month or so is to prepare an article that’s concise, answers the list of questions, is easy for novice/experienced equity investors to understand and that encompasses the important aspects of evaluating a bond for investment purposes.
If you have additional questions to add please feel free to comment or contact me. I will add feedback to the list of possible content to be addressed and try my best to incorporate every question into the resources and assessment criteria I provide in the post.
Looking forward to this article. I recently bought PH & N High yield bond fund because I see us living in a deflationary environment for the next year. I always appreciate your extensive research and sound mind in investing.
Is there anywhere in Canada where an investor see say Corporate Bond Offerings, whatever the yield and maturity. I understand that is a no no!
Each discount broker (big 5 bank) has a different fixed income section that will include roughly the same information. One tool that I do know certain investors use is GlobeinvestorGold. There is a monthly subscription charge, but this is something I might address in a future post to give readers better insight into where to find prices and determine pricing.