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This is the "safe" part of your porftolio, so you want to invest in government or highly rated corporations. (Highly-rated corporates are large, established multi-nationals like General Electric or Citibank, who are not likely to default on their bond payments.) The U.S. is regarded as the safest place to invest. This part of your portfolio might include U.S. government bonds and the debt (bonds) of U.S.-based corporations. How do you pick which bonds to buy? Thankfully, someone already did that research. "The Lehman Brothers Aggregate Index ... represents securities that are U.S. domestic, taxable, and dollar denominated. The Index covers the U.S. investment grade fixed rate bond market, with index components for government and corporate securities, mortgage pass-through securities, and asset-backed securities." Lehman Brothers' bond market indices are widely used as benchmarks and guidelines for investors.

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โˆ™ 2005-10-31 13:44:44
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Q: How do you decide what bonds to invest in?
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Related questions

Where can I find information on "How To" invest, and "How To" invest in government bonds?

There are many websites that offer advice on how to invest money and on purchasing government bonds such as: www.treasurydirect.gov/ and www.rsaretailbonds.gov.za/


Why would a person invest in junk bonds-?

A person would invest in junk bonds,because they pay a higher interest rate, than the high-quality bonds.


How old does one have to be to invest in municipal bonds?

How old does one have to be to invest in municipal bonds? One must be at least at the adult legal age of eighteen to invest in municipal bonds. They are a serious action that must require an adult of a legal age to pursue.


What is tax exempt municipal bonds?

Tax exempt municipal bonds can be found through government websites. If you invest in these bonds the interest earned are not taxable. It's an incentive to invest in government programs.


How do people decide how much money to invest?

There are many ways how people decide how much money they should invest. It will depend mostly on their circumstance, to gain advice on how much to invest it is best to visit your bank.


What are the 6 major reasons to invest into bonds?

Reasons to invest in bonds include receiving semiannual interest and preserving capital investment 勁啊


How do you define financial investment?

to invest in bonds and treasury


What are the benefits in investing in bonds?

you can literally invest :D


Why do people invest money in stocks bonds and mutual funds?

To get more money. You invest because you are seeking a return.


What is a safe amount to invest in municipal bonds?

A safe amount to invest can in municipal bonds is not to exceed 5% of your complete portfolio. Municipal bonds are not risk free, as some cities, e.g. Stockton, CA, have gone bankrupt in recent times.


Would a highly conservative investor invest in government bonds?

yes


Is it safe to buy corporate bonds?

Yes, it is safe to buy corporate bonds. You can read more about it at monevator.com/2010/02/03/is-it-safe-to-invest-in-corporate-bonds/.


A person who prefers being a creditor to being an owner would invest in?

bonds


How do mutual funds make money?

They make money by buying and selling the instruments they are designed to invest in. For ex: Equity MF's will invest in stocks, a Debt MF will invest in Bonds and other debt instruments


Why might a company decide to issue corporate bonds?

A company may decide to issue corporate bonds if the company needs to raise money for some reason. A bonds acts like a loan between an investor and a company.


What are some ways to invest in a China ETF?

Most ways to invest in a China ETF are similar method. One should invest in a emerging market, Asian markets, BRIC markets, and International Bonds ETF.


A person who prefers being a creditor would invest in?

bonds and Debt, not equity or stock.


Why do investors need accounting information?

Investors need the accounting information to see that how company is performing to decide whether to invest or not in company.


What do corporate bond funds own?

Corporate bond funds invest in a combination of corporate debt, U.S. treasury bonds, or other federal bonds


How does one decide to invest in gold?

Most people that decide to invest in gold are think "buy low, sell high" for a good profit. Every year, gold prices go higher, so buying now, you are saving money.


Can banks invest in corporate bonds?

Yes they can. Not all do, it depends on their investment policy. There may be a cap to how much they can invest in corporate bonds and there may also be a minimum rating. I know this because I am a Bond Broker and just recently sold a corporate bond to a bank!


Who would benefit most from high yield bonds?

People with lots of money to invest benefit most from high yeld bonds as they can afford to absorb the hit in the case of failure without ruining themselves provided they did not invest all their money in one thing.


How can I invest in Bonds in Wells Fargo Bank?

Before investing in bonds, you will first need to open a brokerage account with Well Fargo if you do not already have one. Once you have done that, you can get specific information on their bonds at: https://www.wellsfargo.com/investing/bonds/index.


What is the risk involved with high yield bonds?

The major risk with high yield bonds is losing all of your money you invest. These type of bonds have a very low rating much lower that the investment grade.


Which are the best mutual funds to invest in?

No one person could decide on the 'best' mutual funds to invest in, as different companies offer different incentives for consumers to invest into their businesses which would appeal to other types of people.