Most financial advisors handle bond investing in a similar way: they put clients in big bond index funds and ETFs. With historically low bond fund returns and a 1% advisor fee, the effective return to a client may be diminished. Individual corporate bonds are a compelling alternative to bond funds, as they offer higher potential returns and typically are less sensitive to changes in interest rates than large index funds.
Steve Shaw's presentation will empower you to differentiate your practice and better serve clients by incorporating individual corporate bonds into your client portfolios. It will lay the foundation for you to understand how corporate bond investments work and the analysis used to identify bonds that can outperform the market.
You will learn the following during this presentation:
1. Corporate bond investing basics and the advantages these investments have over bond funds and municipal bonds
2. What really makes bond prices go up and down (it’s not always ‘interest rates’)
3. How to achieve returns higher than a bond’s yield to maturity
4. Why bond ladders are a bad idea
5. How bond investors transacting in small quantities often trade at better prices than institutional investors
