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Municipal Bond suggestion................Anybody know much about bonds???

redgtxdi

redgtxdi

Diamond Member
So this guy at a local investment firm won't leave me alone & he keeps hammering on me to invest in something. I tell him I'm a high-yield savings account / mutual fund guy & don't have time for individual bonds.

Rates he's showin' me keep going higher & higher & he finally got my interest......EXCEPT........

Before I even *think* about doing anything with him, I wanted to run it by the experts here at ATOT..... 😛

The bond is called "Catholic Health West-Health Facilities" and is supposedly a non-profit San Fran public benefit corp. Here's the stats:

Grade 'A' (that's single-A)

Coupon = 6.00%
Yield to Call = 5.544%
Maturity 07/01/2034
Yield to Maturity = 5.847%
Price $5000
Not insured
No taxable-equivalent yield, but this is a California bond. (home of Arnold's 'pimpin' ain't easy' home state) 😎

Any feedback?
 
High yield in such a shitty climate probably means some risk. A non-profit health-care facilities group from a "local investment firm"...
 
Originally posted by: Imp
High yield in such a shitty climate probably means some risk. A non-profit health-care facilities group from a "local investment firm"...
Click to expand...

Every party has a pooper

That's why we invited you

George Baaaaanks

Party pooper!!

😀

Ya, I think I'll stick w/ what I know.
 
Bond bubble - check
Bankrupt liberal state bond - check
Massive inflation risk - check

don't buy bonds right now.
 
Originally posted by: FelixDeKat
Originally posted by: JS80
Bond bubble - check
Bankrupt liberal state bond - check
Massive inflation risk - check

don't buy bonds right now.
Click to expand...

:thumbsup:

buy a gnma bond fund if you must
Click to expand...

x2
When ya start auctioning landmarks its cause for default concern.
 
So, I'm bumpin' this old thread cuz I'm feelin' a little dumb now. Did I miss the bond boat??

It appears that all bonds have done well in '09. Some YTD returns on bonds & bond funds have been double-digit!!!!! WTF????

Talkin' w/ the father-in-law over Tday weekend, he was talking about how he's bought 3 different bonds making anywhere from 6% to 8% on them. WTF????

I think these were the ones he talked about.........

Goldman Sachs -5 year bond
California somethin' or other -10 year bond
Some power-company bond (can't remember) -5 year bond

He ditched GE Capital at 5.75% to pick up one of the 3 above, though I don't remember which it was, but I couldn't believe that things were so good that 5.75% wasn't a good enough rate. My friggin' Ally online savings account is earnin' me a HUGE 1.50% right now.

Double-Triple-Quadruple---WTF!!?!?!?!?!?!?!?!
 
I was going to open a mutual fund in March. $1,000 required to open it and $200/month thereafter until the balance was $3,000 and then minimum $100 I think. It was the Vanguard Star fund. It is up 45% since then and I never opened it. *kicks himself in the nads*
 
redgtxdi said:
So, I'm bumpin' this old thread cuz I'm feelin' a little dumb now. Did I miss the bond boat??

It appears that all bonds have done well in '09. Some YTD returns on bonds & bond funds have been double-digit!!!!! WTF????

Talkin' w/ the father-in-law over Tday weekend, he was talking about how he's bought 3 different bonds making anywhere from 6% to 8% on them. WTF????

I think these were the ones he talked about.........

Goldman Sachs -5 year bond
California somethin' or other -10 year bond
Some power-company bond (can't remember) -5 year bond

He ditched GE Capital at 5.75% to pick up one of the 3 above, though I don't remember which it was, but I couldn't believe that things were so good that 5.75% wasn't a good enough rate. My friggin' Ally online savings account is earnin' me a HUGE 1.50% right now.

Double-Triple-Quadruple---WTF!!?!?!?!?!?!?!?!
Click to expand...

Uh, yea, you make 8% until they default and your investment goes to 0 (the cali bond you first referred to in your OP). It's only been a few months. Give it a year, CA will bk.
 
California bonds? HAHAHA. The rating is crap, too. When towns with AA ratings are struggling to close shortfalls and laying of tons of people, you have to ask yourself if you really want to take this kind of risk.
 
california bonds? seriously? have you looked at what much budget gap they need this patch this year? about 20 billions. the last year budget gap was a few billions and they cut up services, issued IOU for tax refunds, etc.

oh yea...the 20 billions gap is this year, the projected budget deficits for next few years are about that much.

how about just buy ibond for now? easy 3-4% return and tax exempted.
 
If you want to invest in bonds, do so in a bond fund/etf for the diversity. I wouldn't put all my eggs in one basket on a 6% bond for a non-profit org.
 
FoBoT said:
this
what are you going to do in 1-2 years when interest rate are 18-25%
Click to expand...

Well, that sounds traditional, but in what world can you imagine rates going high (especially THAT high) in light of the current world status?

I mean, I honestly can't imagine even seeing ANY double-digit interest rates inside of at LEAST 10 years. (Hell, we might not forget about this mess for 20 years and even THEN we might not see rates that high)

And what about the other bonds that the FIL picked up. Is Goldman Sachs gonna default on a bond in the next 5 years?? Cuz if not, the FIL is earnin' a steady 6% for 10 years!! Where's the risk on that one?

I can't find a 5-year CD willin' to pay out anything more than 3% and I think those rates are DROPPING!!! 6% looks like a friggin' goldstrike!!

:confuzzled:
 
(low) "double-digits" ? Not terribly impressive, the S&P 500 index fund shares I bought in February are up 37%. That's what happens when you buy at the bottom.

Anyone pushing a single bond fund that hard is hoping to make a fat commission off of suckers.

If you decide you need bonds to balance your stocks and cash, get a bond fund to spread the risk like darkxshade said.
 
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