Source: Digital Look
I don’t know what annoys me more: That Barclays Bank shares rose 72% on Monday while I was still finishing off a post suggesting they might be worth a punt, or that I didn’t buy any myself.
Oh ‘greedy’ side of the fear-greed investing equation, how we’ve missed you.
- What are the benefits of corporate bonds?
- What are corporate bonds?
- What causes corporate bond prices to fluctuate?
- The main types of corporate bonds
- Convertible bonds
- Other kinds of bonds you may come across
- Stocks vs corporate bonds
- Historical returns from corporate bonds
- Corporate bond prices and yields
- How to calculate bond yields
- Bond default probabilities: by rating
- Does opportunity knock in the UK retail bond market?
- How to create your own DIY corporate bond portfolio
There are three main things that drive changes in a corporate bond’s yield and so its price:
- The closeness to the redemption date
- The interest rate environment
- The perceived risk of the bond defaulting
- What are the benefits of corporate bonds?
- What are corporate bonds?
- What causes corporate bond prices to fluctuate?
- The main types of corporate bonds
- Convertible bonds
- Other kinds of bonds you may come across
- Stocks vs corporate bonds
- Historical returns from corporate bonds
- Corporate bond prices and yields
- How to calculate bond yields
- Bond default probabilities: by rating
- Does opportunity knock in the UK retail bond market?
- How to create your own DIY corporate bond portfolio
Just as governments issue bonds to finance public spending, so companies issue bonds to raise money to invest in their business.
For companies, corporate bonds provide an alternative to raising money by issuing shares. For private investors, corporate bonds offer the opportunity to buy a fixed income in exchange for an investment of capital.
All types of corporate bonds share common traits that you need to understand before you consider an investment.
Honestly, I despair. The day before the UK Government unveils a second banking rescue package worth hundreds of billions of pounds and RBS (once one of the world’s largest banks) falls 67% to become a penny stock, the Conservative party apparatus circulates a press release concerning… Value Added Tax in a Government gift shop.
Important: What follows is not a recommendation to buy or sell RIT Capital Partners. I’m just a private investor, storing and sharing notes. Read my disclaimer.
Name: RIT Capital Partners Ticker: RCP
Listed in: London (FTSE 250)
Business: Investment vehicles
More info: Digital Look / Google Finance
Official site: RIT Capital Partners
Some say it’s harder to keep hold of serious money than to acquire it. They tend to be very rich. The rest of us would dearly love to find out!
For preserving great wealth over the long-term, it’s hard to beat the Rothschilds. This banking dynasty started making money in the 18th Century:
- Nathan Mayer Rothschild helped finance the British Napoleonic War effort, sending bullion to the Duke of Wellington at the front
- The Rothchilds backed the industrial revolution in Europe, financed railways worldwide, and put together funding for huge projects like the Suez canal
- The family business continues today, with various wings operating investment and finance firms including: N M Rothschild & Sons, Concordia BV, LCF Rothschild Group, Atticus Capital LP and RIT Capital Partners
Do what the rich do
You can’t argue with a 200-year history of making money. I don’t understand why someone would back the ‘black box’ investing of a newbie billionaire like Bernie Madoff, the alleged Ponzi fraudster, who apparently discovered the secret of making steady 15% returns but wouldn’t tell anyone else.
When today’s fly-by-night financiers are long gone you can be sure the Rothschilds will still be in the game. While Rothschild conspiracy theories abound as a result of their success, I say good luck to them.
In fact, if you could only choose between reading Monevator or a blog written by Jacob Rothschild (aka the 4th Baron Rothschild) I’d recommend reading Rothschild. Forget Rich Dad, Poor Dad – his blog would be more like Gazillionaire Dad.
I can’t point you to Jacob Rothschild’s blog, but I can tell you how I invest some of my money right alongside his own.
