KEY POINTS: Premium Bonds: Hold value better Partial return of premium with interest payments Can be sold at a profit More likely to be called before the maturity date Reinvestment risk in low interest rate scenario Discount Bonds Preferred by retail clients, along with par bonds. Lower cash flow, but interest payments may be only interest due. [...]
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Concerned about Inflation? What about TIPS (Treasury Inflation Protected Securities)?
By Hildy on January 5, 2012 in Bond Strategies, Government Bonds, Investing in Bonds, Portfolio Construction
Buying Considerations Many investors are sure that higher inflation and higher interest rates are right around the corner. As a result we have had a number of inquiries as to whether, in 2012, a bond investor should buy Treasury Inflation-Protected Securities (TIPS). Investors like the idea of TIPS because they will appreciate if there is [...]
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Opportunity is missed by most people because it is dressed in overalls and looks like
— Thomas A. Edison
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Premium or Discount Bonds? That is the Question
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Premium or Discount Bonds? That is the Question
April 11, 2012
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Pricing TIPS is a Chess Game
January 11, 2012
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Concerned about Inflation? What about TIPS (Treasury Inflation Protected Securities)?
January 5, 2012
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Like Water, Like Cash Flow
December 22, 2011
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Ditch the Casino of Hope and Fear
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