June 23, 2014
After a tortuous year of unseemly power plays, City Council finally made an eleventh-hour promise last week to give Philadelphia's beleaguered public schools an additional $30 million in bond funds to be retired quickly by an increase in the local sales tax. Now it's the duty of the state legislature and Gov. Corbett to help this city's children, who this past year have gone without books, supplies, counselors, teachers, nurses, aides, and adequate...
December 20, 2013 |
Now that the Federal Reserve has decided to cut back its bond-buying by $10 billion a month, the move could torpedo the bond market. What's an investor to do? Professional money managers say they have to keep plugging away as always and hedge against interest-rate moves by buying short-maturity bonds (which are less rate-sensitive) in low-cost funds. "We don't forecast interest-rate moves," says Jeremy Brenn of Sensenig Capital, a registered investment adviser in Fairview Village, Montgomery County.
December 5, 2013 |
Hard to believe, but as of Wednesday, there are fewer than 20 trading days left in the year. So, if you want to take profits in your stock portfolio, now would be the time. Almost all major asset classes except commodities have posted gains this year: The S&P 500 equity gauge has rallied 26 percent, on pace for its biggest annual gain since 2003, and reached an all-time high on Nov. 27. The 2014 market is unlikely to match 2013's stellar gains. "Equities may post further gains in the year ahead, despite the strong runup this year and the abiding potential for some pullback," notes Sage Financial Group, of West Conshohocken, in its latest note to investors.
September 5, 2013 |
Gov. Corbett 's poll ratings may be down around knee level among voters, but in the municipal-bond business, he's a hero. The insistence by Corbett and his backers among the state's law and finance establishment that cash-strapped Harrisburg not seek federal bankruptcy reorganization, and the slow, steady drafting of a restructuring plan that the city's creditors say they can live with, has made him the bond guys' favorite alternative to...
July 22, 2013 |
Investing in bond mutual funds is easy. At least, it was for decades. Investors could count on steady interest payments. Their funds also benefited from rising bond prices as interest rates made a three-decade-long march downward after 1981. When yields fell, bond prices rose: Each step lower made the bonds held by mutual funds more attractive because they offered higher rates than newly issued bonds. But the tide has shifted. Many analysts say we have hit a bottom for interest rates, and the yield on the 10-year Treasury note has climbed to 2.5 percent from 1.6 percent at the start of May. The rise in rates has led to losses for many bond mutual funds, and it's something investors need to get used to, says Rick Rieder, chief investment officer of fundamental fixed-income portfolios at BlackRock, the world's largest asset manager.
July 10, 2013
In the Region Rare net outflow at Vanguard For the first time since 1994, investors sold more Vanguard Group funds than they bought last month, as investors fled low U.S. bond yields. The Malvern-based mutual fund company, one of the nation's largest money managers with over $2 trillion in assets, saw net withdrawals of around $100 million for that month, the first since December 1994, according to spokesman John S. Woerth. Investors sold a net $9.7 billion in Vanguard bond funds and $400 million in "balanced" bond-and-stock funds in June, while buying not quite as much, total, in stock ($4.8 billion)
January 1, 2013 |
Stocks in the S&P 500 rose 13 percent in 2012. But many American investors bet the other way, dumping stock-fund shares and investing "astounding" sums in low-yielding bond funds, as if they thought that would be less risky, says Michael Galantino , managing director at investment brokers Boenning & Scattergood in West Conshohocken. Boenning makes a lot of its money from bond sales. But the big bond pile-on is likely to end badly, Galantino warns. Sure, Federal Reserve board chairman Ben Bernanke says he wants to keep interest rates near record lows until bosses start hiring again.
December 7, 2012
D EAR HARRY: I'm a retired Vietnam veteran who belongs to a group of vets that has a monthly meeting. At the last meeting, there was speaker who was presented as a financial guru. He told us of a little-known bond fund that has produced an annual yield of more than 7 percent in the last three years. There were a few guys there who confirmed this, saying that they have been with him for years. No one would name the fund, so I am a little leery of the claims, but a few people signed up to invest.
May 25, 2012 |
The Vanguard Group closed its high-yield corporate bond fund to most new investors to curtail a flood of money from investors seeking the relatively high returns of its non-investment-grade bonds. In the last six months, investors had poured $2 billion into the fund, bringing its total assets to $16.9 billion, Vanguard said. "In this prolonged low-rate environment, we continue to see investors turn to high-yielding alternatives — including money market fund holders moving to bond funds, U.S. Treasury bond fund holders moving to high-yield corporate funds, and bond fund holders moving to dividend-paying stock funds.
January 24, 2012 |
Corporate bonds are grabbing the spotlight these days as investors grow desperate for yields above rock-bottom U.S. Treasuries, which are returning just 3 percent or so annually. We asked one reader, Karl O. Koch, to allow us to reprint his question: How does one go about buying corporate bonds? We'll show you the ways to buy individual corporate bonds and bond funds, the pros and cons of each, and the fees to watch out for. Retail investors can research company bonds' risk via credit ratings.