Best of the Bond Market for June 21st, 2012 Counting Pips: The Bond Investing Opportunity of a Lifetime? – Homebuilders are cheap, especially the bonds. Beazer currently has a cheap bond that will give you a minimum expected annual return (MEAR) of about 12% for the next six years. Michael Terry: PulteGroup (homebuilder) Bonds Look like a buy – PulteGroup is on the road to recovery. It also appears that the market has, at this point, fully valued the equities….investors should consider climbing up the capital structure into bonds as they will benefit from further fundamental strengthening of the group and provide investors with a cash flow stream. Ploutos: Strategies To Position Your Bond Portfolio For Interest Rate Moves – This article presents two simple to implement trading strategies to generate higher levels of risk-adjusted returns from your bond portfolio: one provided by a recent academic paper by Naomi Boyd of West Virginia University and Jeffery Mercer of Texas Tech University and one provided by the article’s author, Seeking Alpha’s Ploutos. BusinessWeek: The Fiscal Cliff Just Got Steeper – The extension of Operation Twist means that additional stimulus to the economy is now scheduled to be withdrawn at exactly the same time–so the fiscal cliff has just gotten steeper….the program’s new expiration date: Dec. 31, 2012. Learn Bonds: Using Bank Loan Mutual Funds to Hedge Rising Interest Rates – If the US is entering a multi-year period of rising interest rates, Bank Loans Mutual Funds should outperform High-Yield Bond funds while providing a similar level of yield. ETF Trends: The Bullish Case for High Yield ETFs – there are a number of factors that support the high yield corporate debt category. Of course yield is a big reason, due to the constant search for income in today’s market. Downside protection is another reason to favor corporate debt, as well as good fundamentals Bond Buyer: Market Update Secondary Stalls as …
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