Safety in Troubled Times: Corporate Bonds

WMIArticles, Corporate, Ideas 1 Comment

In these troubling economic times, it is wise to invest in solid, investment grade bonds which have a reasonable rate of return. Solid Israeli corporate bonds provide a better rate of return than State of Israel government bonds, with some more risk. Fixed-yield, adjustable or inflation protected corporate bonds may prove to be a good strategy for capital perseveration-oriented clients.

Suggested adjustable-rate corporate bonds

Current Yield to Maturity and other information for various Israeli corporate bonds can be found at the Tel Aviv Stock Exchange English website here (expand the table to see all the columns).

Ratings

There are two internationally-recognized bond rating agencies that examine Israeli companies' ability to repay their debts: Standard and Poor's and Moody's.  The S&P's rank can add a fine tuning of + or -; Moody's can add a fine tuning of 1,2 or 3 to better rank a bond within a specific category.

 

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