I'm with IB. I'm exp with trading equities/options but not bonds - help

Hi all

I'm with IB. I'm exp with trading equities/options but not bonds - help

Basically interested in putting my toe into fixed income; stupid questions galore.

Are there many short term company bonds available? I don't mind slightly higher risk but are there decent 8-10% fixed bond options (ire. MSFT? aapl? turkish pastry bbb bonds?) ? thank you

 

8-10% fixed income will require you to take on significant risk.

 

What you're looking for are junk bonds and they're the likes of BBBY. Like the above poster stated, beware they come with high risk.

 

HYG is a corporate bond ETF. Very liquid ($15B AUM) with decent options. Safer than individual companies.
Currently yielding 5-6% paying monthly.

 

Corporate bonds at such yield highly correlate with equity performance of the issuing company. You need to do more research.

 

While it lost 20% since the height of equity markets. A very poor investment during weak equity markets. For above mentioned reason.

 

I heard on Bloomberg Radio few days ago that a EM bond manager bought Evergrande bonds at 8 cents plus accrued interest, later he sold it for 32 cents.

If you are willing to take risks, EM is a prefect place to look.

 

EM equity and bonds are a lot more attractively priced than the likes in the US from a risk/return perspective.

 

Bonds returns are attractive but not equities, assuming risk being equal.

 

They are clearly not exhibiting similar risk profiles, hence, a moot point.