As you're preparing to make a large investment into corporate bonds, you need to consider the risk factors. Unless you are prepared to lose everything in a leap of faith to pursue a very high yield rate, you are likely looking for something of a long-term investment. This means you need to understand where the top AAA corporate bonds are.
All corporate bonds are rated. The ratings range from AAA to C, which has to do with the financial strength of the issuing company. is the most secure and thus the lowest risk bond. What this means for you is that when you invest in such a bond, you are likely going to see the promised yield without any kinds of problems along the way. If you invest in anything less secure, you are taking a risk.
There are many places that you can find AAA corporate bonds. Some of the top companies in the world don't have this kind of rating, so you cannot make any kinds of assumptions. The companies that are rated as such can also fluctuate due to annual reports, mergers and acquisitions. Keeping an eye on who has what ratings are then essential to your investment portfolio.
Moody's is one of the best ways to learn about who has the AAA rating in the world of corporate bonds. This is a performance index provided by Moody's Investment Firm. This company has been used for decades to provide a very macroeconomic look into various companies and insurance firms to show the financial stability of a company. This report is often used as a closer look of interest rates as opposed to the 10-year Treasury Bill as well.
You want to work with a financial advisor to get a prospectus on AAA corporate bonds. Your advisor will analyse the market on your behalf and give you a recommendation of corporate bonds based upon the amount of money you have to invest. Since not all bonds are traded at the same value, the amount that you have to invest will greatly impact the number of AAA corporate bonds that you will be able to purchase.
Throughout the internet, you will be able to locate corporate bonds that are rated AAA. When you take the time to follow various financial blogs, you can access free financial advice, often where people are talking about which bonds are AAA, AA and even A. While you may not be able to afford the few companies that have the AAA rating, you may be able to go with something slightly more risky without worrying about losing your investment.
Business Week, Forbes and other financial publications can be advantageous to read through. If one company is currently building financial stability, they may be rated an AA in one quarter and an AAA in the next. As a result, getting in on the bonds early can prove to be very beneficial to your investment portfolio.
Start with talking to your financial advisor about corporate bonds and go from there.
No comments:
Post a Comment