Corporate Bonds Versus Treasury Bonds
While it is true that corporate bonds have outperformed Treasuries, we have not and do not recommend owning corporate bonds for two main reasons: 1) they contain some of the same risks that stocks do; and 2) the historical outperformance...
Coupon Rate, Yield and Expected Returns on Fixed Income Securities
Currently, rates in the fixed income market are very low. As of September 13, the yield on the five-year Treasury note was close to 1.5 percent. In a low-rate environment in particular, it is critical to understand the differences between...
Interest Rates and Expected Returns
Many people are questioning whether they should stay in fixed income or branch out to other strategies with higher expected returns, due to low interest rates. The following discusses viewing expected returns between investment strategies. The low interest rate environment...
