Let's begin our how to invest in corporate bonds webinar.
When investors decide whether to invest in bonds, they should view individual corporate bonds as investments that can, at times, achieve higher returns than stock market investments but without the downside and investment volatility of stock investments. As of December 31, 2018, BondSavvy had presented 27 corporate bond investment ideas, of which, 24 are still being recommended. We recommended selling one pick, and two others were 'hold but don't buy more.'
Prior to launching BondSavvy in June 2017, I had made 13 investments in individual corporate bonds. I show the returns for these previous investments below. These examples show how bond investing isn't just for clipping coupons and making 2-3% returns. Corporate bond investments can often provide high returns, especially if investors can identify bonds that are a compelling value and that can appreciate in price.
Corporate Bond | CUSIP | Purchase Date |
Sold Date |
Annualized Investment Return |
Exited Investments | ||||
Cablevision 8.000% 4/15/2020 | 12686CBA6 |
12/8/15 | 1/10/18 | 13.3% |
Cablevision 5.875% 9/15/2022 | 12686CBB4 |
12/8/15 | 1/9/18 | 17.6% |
Toys R Us 10.375% 8/15/2017 | 892335AN0 |
2/12/16 | 9/26/16 | 54.2% |
US Cellular 6.700% 12/15/2033 | 911684AD0 |
12/17/14 | 7/9/15 | 5.1% |
ADT Group 4.875% 7/15/2042 | 00101JAG1 |
10/16/14 | 7/9/15 | -5.8% |
GFI Group 8.625% 7/19/2018 | 361652AA8 | 1/16/13 | 3/17/15 | 16.0% |
Ruby Tuesday 7.625% 5/15/2020 | 781182AB6 | 1/6/17 | 7/15/17 | 0.8% |
Apple 3.850% 5/4/2043 | 037833AL4 | 10/28/13 | 5/9/18 | 6.4% |
CenturyLink 7.600% 9/15/2039 | 156700AM8 | 1/4/17 | 8/5/18 | 4.9% |
Microsoft 4.000% 2/12/2055 | 594918BE3 |
2/12/16 |
1/3/19 |
6.4% |
Still-Held Investments | ||||
Apple 4.450% 5/6/2044 |
037833AT7 |
2/12/16 |
||
Discovery Comms 4.950% 5/15/2042 | 25470DAG4 | 1/19/17 | ||
Jefferies 6.500% 1/20/2043 | 472319AM4 | 1/19/17 |
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