One popular and successful investment strategy is momentum investing. This involves investing in shares that are soaring in value, making the most of the current trend.
Yet there are some investors who take the opposite approach to investing. This involves investing in shares that have dropped greatly in value and buying bonds downgraded to junk status.
So is this fallen angels' investment s... ››› more
There are three main credit ratings agencies which hold a lot of clout with their ratings. These are Moody's, Standard & Poor's and Fitch.
As well as providing other ratings, these agencies give ratings for bonds.
So how do these bond credit ratings work?
Let's take a closer look…
The main categories of bond credit ratings
There are two main categories that bonds fall i... ››› more
When the stock market goes through a bear market, one asset class that tends to perform is bonds.
During bear markets, high quality bonds perform well. And this has been the case for the vast majority of bear markets over the past 100 years.
So how can you invest in in bonds? And what's the best way to go about it?
Read on to find out…
How to invest in bonds
If the stock marke... ››› more
Many investors like to include bonds in their portfolios. Whilst the returns are likely to be paltry in comparison to shares, they are safer investments paying you a fixed income.
If you've looked at government bonds, you'll likely have come across inflation linked bonds.
So what are these? And should you invest in them?
Read on to find out…
What are inflation linked bonds?
In... ››› more
If you have looked into bonds, you've probably come across a yield curve.
So what exactly is a yield curve? And what are yield curves for?
Read on to find out…
What is a yield curve?
A yield curve is a chart showing the interest rates offered on the bonds of a borrower against its maturity dates.
When you buy bonds, you lend money to the issuer of the bond. In return for this,... ››› more
Investing in bonds offers you a number of advantages.
If you hold higher risk investments like stocks, buying bonds lowers your overall investment risk.
If you're looking for a regular income from your investments, bonds tick this box too.
And if you want to invest your money for a specific period of time, bonds are perfect.
So if you want to invest in bonds, how do you do so?
There... ››› more
Unit trusts provide you with an easy way to invest in a number of different assets. You can use them to invest in different types of equities, money market funds and bonds.
If you're looking for a lower risk option to generate an income, unit trusts have the solution.
Let's take a closer look…
Investing in income funds
Income funds are unit trusts that focus on generating an incom... ››› more
Much of the emphasis of your investment portfolio may be on the stocks you pick. But there's a crucial asset class you should also include.
This asset class is bonds. As a fixed-interest investment, it comes with a number of benefits.
So what are these benefits? And how can you invest in bonds?
Read on to find out…
Why you should invest in bonds
By investing in bonds you can be... ››› more
Including bonds in your investment portfolio helps to add some stability and lower its overall risk. Plus, you'll have regular interest payments to look forward to.
So what's the best way to invest in bonds? Should you buy into bonds directly or through a bond fund?
Let's take a closer look…
The pros and cons of investing directly in bonds
You can invest directly in bonds through ... ››› more
If you're looking to invest in government bonds, one of the easiest ways it through RSA Retail Savings Bonds.
But you have other options. You could look to invest in exchange traded funds (ETFs). Some of these ETFs track the performance of government bonds.
So how do these ETFs work? What are your options? And how can you invest?
Read on to find out…
Bond ETFs listed on the JSE
... ››› more
Investing in bonds is a great way of lowering the overall risk of your portfolio.
By lending governments or corporations money, you receive fixed interest payments.
But bonds can seem complex. There's a host of new terms to understand. And the risk differs amongst different types of bonds.
Getting to grips with these details will help you find the best bond unit trusts to invest in that a... ››› more
Investing in bonds may not offer you the level of potential gains of investing in stocks, but they play an important role in your portfolio.
So what are bonds? Why should you invest in them? And how can you invest in bonds?
Read on to find out…
What are bonds?
Bonds are fixed-interest securities. When you buy bonds, you’re lending the issuer money. In return for this loan, you... ››› more
If you're investing for income, you can't ignore bonds.
By investing directly in bonds you gain from twice annual interest payments until the bond matures.
If you want to hold a diversified holding of bonds, an easy way to achieve this is through unit trusts. And by investing in bond funds, you can opt to invest in South African bonds or international bonds.
Let's take a closer look at ho... ››› more
When you buy bonds, you loan money to a government or corporation.
In return for this loan, you receive interest payments twice a year until the end of the term of the bond.
There are certain definitions that you need to understand when it comes to buying bonds.
Let's take a closer look at what these terms are and how they work in relation to bonds…
The basics of bonds
Here are... ››› more
When you buy bonds, you lend the bond issuer money. In return for this ‘loan,' the bond issuer pays you interest until the bond matures.
There are two main types of bonds you can buy: Corporate bonds and government bonds.
So what's the difference between these types of bonds?
Read on to find out…
What are bonds?
Bonds are known as fixed-income securities. This is because for ... ››› more
Investing in bonds is generally a safer investment option to investing in shares. But this doesn't mean they don't come with risks.
If you're looking to buy into different bonds, how can you compare them?
One way to do it is to use the yield spread.
Read on to find out more…
What is the yield spread?
The yield spread is the difference in interest rates (yields) offered by diffe... ››› more
If you're looking for an investment opportunity with lower risk than investing in shares, bonds are worth considering. They're also a good addition to your portfolio to lower your overall investment risk.
So if you want to buy bonds, what are your options?
There are five main ways you can gain exposure to bonds.
Read on to find out what these are…
How to invest in bonds
#1: B... ››› more
Bonds are a low-risk investment option. They have a number of uses depending on what your investment goals are.
So what role can bonds play in your financial future?
Let's take a closer look…
Why investing in bonds can be a wise decision
There can be a variety of reasons for investing in bonds. It depends on your circumstances, and your investment and financial goals.
To see ho... ››› more
If you want to have low-risk investments in bonds, one thing you need to consider is whether your investment returns are at least keeping up with inflation.
If they aren't, then you're actually losing money.
So if you want to invest in inflation-linked bonds, what are your options?
Let's take a closer look at two of them…
Keep up with inflation with inflation-linked RSA Retail Sav... ››› more
If you're looking for a stable investment that pays you an income, you can't look past bonds.
If you want to invest in bonds, you have two main options: You can invest in a bond unit trust or you can invest in bonds directly.
So which route is best for you?
Read on to uncover the pros and cons of investing in bond funds and directly…
Investing in bonds: The pros and cons of unit t... ››› more
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