October 22. 2014. Go to “Core Portfolio” for current holdings. Hit the “Follow” button to get updates.
As regular readers know, I really like individual corporate bonds. (not bond funds) I have had good luck with corporates and I have been suggesting corporate defined maturity etf’s recently. The entire list is in the Core Portfolio.
Most people are not aware of corporates. Brokers do not make any money selling you corporates, advisors seem to have no interest in corporates, and CNBC never talks about them. But Corporates are a huge market and you should get educated on this segment of the financial markets.
Corporates are similar to a Treasury issued by the USA, except that corporates are issued by Companies. Unless the Company goes bankrupt (which is a potential like the JC Penney bonds that I own) your money is typically safe—when the bond matures you get your money back plus the dividends you earned. It is So important that you buy quality Companies and not crappy Corporates from crappy Companies..
Which leads me to a Corporate bond that I am suggesting you look at.
R.R. Donnelley & Sons Company is a global provider of communication services. It has over 60,000 customers with expected 2014 revenue in the $11.5 to $11.8 billion range. They have had troubles in the past but it appears they are making a turn around.
2024 maturing notes, CUSIP 257867BB6
Providing over 6%. Do not buy more than two or three bonds which will cost you around $1000 each. Always buy small amounts (of any position that you purchase) to reduce your risk of defaults.
One more point: do not get suckered into bonds that mature in 2045 or 2038—-way out there. You don’t know what the hell is going to happen 20 or 30 years out!!!