BondsOnline NetworkBondsOnlineBondsOnline Quotes

BondsOnline Fixed Income Investing              


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.
Treasury Bonds Bond Yields
 
Bond News
Bonds Online
Bonds Online
Bonds Online
Bonds Online
11/21/2014Market Performance

S&P Indices
Municipal Bonds
S&P National Bond Index 3.06% -0.01
S&P California Bond Index 3.17% -0.01
S&P New York Bond Index 3.21% -0.01
S&P National 0-5 Year Municipal Bond Index 0.85% 0.00
S&P/BGCantor US Treasury Bond 405.03 0.42
More
Income Equities:
Preferred Stocks
S&P U.S. Preferred Stock Index 825.66 1.16
S&P U.S. Preferred Stock Index (CAD) 687.47 -3.62
S&P U.S. Floating Rate Preferred Stock Index 740.42 0.16
S&P U.S. Floating Rate Preferred Stock Index (TR) 1,271.99 0.27
S&P U.S. Preferred Stock Index (TR) 1,834.50 2.57
S&P U.S. Preferred Stock Index (TR) (CAD) 1,527.46 -8.05
S&P U.S. Fixed Rate Preferred Stock Index 838.53 1.31
S&P U.S. Fixed Rate Preferred Stock Index (TR) 1,879.78 2.94
REITs
S&P REIT Index 176.11 1.08
S&P REIT Index (TR) 458.09 2.80
MLPs
S&P MLP Index 2,888.60 1.14
S&P MLP Index (TR) 6,878.07 2.72
See Data


Bonds Online
Print this Page Print Version   Email this Page to a Friend Forward to a Friend     Share  

Minibonds: PINES, QUIBS, PDs, and More

FavStocks - Sept. 7, 2010 - By Stocker Blog

Income investors, are always looking for new and different alternatives to the staid municipal bonds and utility stocks. One interesting alternative is the Minibond. This is a bond that is traded, just like a stock, on the New York Stock Exchange or American Stock Exchange for around $25 per share. They are almost like preferred stocks except that they pay interest instead of dividends and they usually have a specific maturity date. Sometimes they are referred to as PINES (Public Income Notes) or QUIBS (Quarterly Interest Bonds) or QUICS (Quarterly Income Capital Securities) or QUIDS (Quarterly Income Debt Securities). There are even a few that are issued as Perpetual Debt or PDs, which means that there is no maturity date.

The advantages of Minibonds to the issuers are that the interest is deductible to the corporation (unlike dividends on preferred and common stocks, which are not deductible).

The advantages to the investor are first, that the bonds are more secure than preferred stocks (in other words, if the corporation goes out of business, the bonds are generally paid off first before the preferred or common stock). Second, the Minibonds (with the exception of the perpetual debt bonds) have some limited protection against inflation versus preferred stocks in that if interest rates go up after purchasing them, their value will drop; however the par value (usually $25) will be paid back at maturity on the Minibonds. Whereas, preferreds have no maturity. The third benefit is the small denomination, especially when looking at a $2,000 IRA investment. A fourth benefit is that since they are traded like stocks, there is more liquidity than buying or selling a $5,000 bond. However, these are still very illiquid investments. Most have a very low daily volume.

An example is the AT&T Inc. 6.375% Senior Note (ATT), which currently yields 5.9% and pays quarterly. Another is the Viacom, Inc. 6.85% Senior Note (VNV), yielding 6.5%, which also distributes payments quarterly.

WallStreetNewsNetwork.com is working on a list of all the Minibonds, which can be downloaded and sorted. It should be posted in the next few days.

Author does not own any of the above.

By Stockerblog.com
Bonds Online
Partner Market Place
Bond Maturity
What kind of BONDS do YOU own?  The DRL Group - Fixed Income Specialists: DRL Group LP is a branch office of and securities offered through WFG Investments, Inc. (WFG), member FINRA & SIPC. Registered REpresentatives of WFG Investments
Bonds Online
Stuff to look at
Yield and Income Newsletter: A must have for income investors. subscribe NOW

S&P Commentary and Newsletters: S&P
Bonds Online
BondsOnline Advisor
BondsOnline Advisor Income Security Recommendation... October 2013 Issue (click here)

Keep up with monthly, in-depth coverage of fixed income market strategies, commentary, and insights as seen by our sources. Sign up for the free BondsOnline Advisor now!

Unsubscribe here [+]
Bonds Online
Bonds Online
Bonds Online