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| BondsOnline.com: instant access to and extensive coverage of over 3.5 million stocks, bonds, indexes and other securities covering major and emerging markets and exchanges across the globe. |
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| Bonds Online |
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| 5/10/2013Market Performance |
| Municipal Bonds |
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S&P National Bond Index
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3.00% |
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S&P California Bond Index
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2.96% |
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S&P New York Bond Index
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3.13% |
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S&P National 0-5 Year Municipal Bond Index
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0.70% |
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| S&P/BGCantor US Treasury Bond |
400.09 |
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| Income Equities: |
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| Preferred Stocks |
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S&P U.S. Preferred Stock Index
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848.03 |
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S&P U.S. Preferred Stock Index (CAD)
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636.26 |
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S&P U.S. Preferred Stock Index (TR)
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1,701.05 |
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S&P U.S. Preferred Stock Index (TR) (CAD)
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1,276.26 |
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| REITs |
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S&P REIT Index
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174.07 |
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S&P REIT Index (TR)
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425.30 |
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| MLPs |
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S&P MLP Index
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2,469.58 |
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S&P MLP Index (TR)
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5,428.50 |
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See Data
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Buying bonds: Funds, single bonds have pros and cons |
USA TODAY - June 11, 2010 - by Matt Krantz
Q: Is it a better idea to buy bonds directly or through a mutual fund?
A: Even the most basic portfolio will contain two types of investments: stocks and bonds.
These work in concert to make sure you get the most return possible with an acceptable level of risk. Stocks and bonds often work well together because stocks give you more potential gain, with more risk, while bonds give you lower returns, but steady income with less risk.
In addition, stock and bond prices frequently diverge. For example, when investors are nervous and want to cut back on risk, they tend to buy debt issued by the Federal government and sell stocks. So bond prices rise when stock prices fall.
Conversely, when investors feel bullish, they tend to take on more risk by buying stocks and selling bonds.
The fact stocks and bonds behave differently is a big reason why they're both valuable to investors.
But you ask a good question regarding the purchase of bonds. Is it better to buy bonds through a bond mutual fund or just buy the bonds directly?
Nothing stops you from buying bonds directly. You can buy Treasury notes and bonds directly from the government with no commission fee. This can be a big savings. And if you're primarily focused on cost, buying Treasuries directly from the government is tough to beat.
By using a broker, you can also buy individual bonds issued by companies. There will be commissions connected with buying corporate debt, but those fees have been plummeting at most online brokerage firms.
Of course, you don't have to buy bonds directly. You can invest in bonds indirectly by buying shares of a bond mutual fund or exchange-traded fund (ETF).
Which is best, buying bonds directly or through funds? There are advantages and disadvantages to both.
For convenience, bond funds and ETFs are hard to beat. You only need to buy one investment, and you instantly own a slice of many bonds. That diversifies your default risk. It might also be easier to track the performance of a bond fund, rather than a number of individual bonds.
Bond funds also diversify your interest rate risk. Most bond funds own bonds that mature at different times in the future, meaning if interest rates rise, the rate on your bond fund will also rise.
But bond funds also have big disadvantages. The fees are a deal killer for many. Many bond funds charge a percentage point, which can really get expensive when yields are low, as they are today. You can easily save this fee, especially with Treasuries, by buying bonds yourself. For the complete article click [Here]
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| Stuff to look at |
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| BondsOnline Advisor |
Income Security Recommendation January 2013 Issue.
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