fixed income recommendations

Discussion in 'Trading' started by SirLouen, Nov 29, 2009.

  1. SirLouen

    SirLouen

    i'm looking foward some fixed income ideas.

    but this forum in most posts they mainly focus in equity.... so i cant find specifically relevant information about FI

    I found some hybrid fixed income http://www.google.com/finance?q=NYSE:AVF

    From AIG, 7,7% every 3 months. looks quite interesting, but looking foward for more of this recommendations, to compare by myself!

    Regards
     
  2. AIG? Yeah, get 7.7% every 3 months and lose 15% in equity every 3 months(or more). You might as well head to vegas with your money than go with AIG.

    I think the safest and best paying dividend out there is phillip morris(MO). Divys pay about 7.2% per year and grow consistantly every year. If you want to gamble on a future dividend payment, try Frontline(FRO) Divy payment right now is 3.8%, but when things pick up again, you could very well see those divys back up to paying 20 or 30% per year.
     
  3. SirLouen

    SirLouen

    Thanks for your observations.

    I though philip morris was PM.NYSE

    http://www.google.com/finance?q=NYSE:PM

    Has 4,64% div yield.

    By the way, AIG, may not be a secure deal but has been pretty stable for more than 3 months in the prize of 15 with nominal of 25 (you can obtain easily more than 3% every three months).

    Maybe it can drop down back to 10 but it feels for me pretty not much possible. Anyway I should have went when it was for about 9-10 with a very nice div of 4% every three months (aprox 16% yearly).

    Any more info in general regarding this topic?
     
  4. I hear trsy bills are all the rage these days...

    Seriously, what sort of fixed income are you referring to? Corps, guvvies, or something else?
     
  5. SirLouen

    SirLouen

    corps, specially, senior bonds or subordinate debts lower or upper tier.

    looking for a medium risk, but higher than 8% yearly yield.

    junior subordinate debentures looks interesting also, as maybe an hybrid option for the fixed income choices, but i'm more into the strictly fixed rate sbased on the US markets.

    I've been investing in the european fixed income markets for a while, but they are pretty much stucked now at 100% or 110% with no exits
     
  6. I live (albeit in near abject poverty) off of fixed income investments. The first rule if buying a high yielding stock is to make sure that the payout ratio is well under 100%. The first rule of buying a closed end fund is to be sure the net asset value is modestly less than the price. The first rule of income ETF's is not to buy yield much above 6%. Currently I am making about 6% annualized using those rules.
     
  7. PM is phillip morris international. MO is philip morris. PM has a smaller divy than MO.


    And remember that the guys running AIG are a bunch of crooks. Not to mention this financial crisis is far from over. No telling how bad it could get because when bad things happen they happen fast. At least with MO and the economy going to hell, you know a ton of people will pick up smoking to calm their nerves and your stock price will go up.
     
  8. I would say you are probably doing okay for yourself.
     
  9. SirLouen

    SirLouen

    6 months ago, investing in fixed income like ALCATEL (ALU) senior bonds, had the opportunity of making a 15 % year yield and a 4 year value increase of x2 easily with 0% risk (is going to bankrupt alcatel in less than 4 year? i doubt it).

    Same with other low risk like Telecom Italia SpA, recently 20% bought by Telefonica (TEF, TEF.MC, TEF.NYSE,...) and yielding over 10%.

    But now is totally impossible this values in european markets. So that rule is not that strict, you can earn a little bit more nowadays with not much more risk.
     
  10. SirLouen

    SirLouen

    Good idea. But rules about smoking are going harder every day :)
     
    #10     Nov 29, 2009