Radical Guide to Bonds: Summary – Getting into Bonds

  • Direct buying can be cost-effective.
  • Trade your bonds through an online bond broker for more competitive pricing.
  • If you’re not an active trader, buy your bonds online through selling groups for U.S. agency bonds, corporate bonds and in the regular auctions for Treasuries.
  • If you’re an active trader, trade online in Treasuries, U.S. agency bonds and larger corporate bonds, as you’ll find the most liquidity and price quotes from online brokers.
  • Be very careful about buried calls in bonds.
  • Check out bond ladders, indexed bond ETFs and low-cost indexed bond funds for your bond market exposure.
  • Avoid actively managed bond funds.
  • Do not believe one vehicle --- whether ETFs, funds or ladders --- trumps one or the other vehicle. Costs are not clear, except with ladders if they are bought through a selling group or auctions.

Back to Guide to Bonds Table of Contents
On to next chapter

June 3, 2005 | Permalink

TrackBack

TrackBack URL for this entry:
http://www.typepad.com/services/trackback/6a00d8341dcf7f53ef00d835475b9269e2

Listed below are links to weblogs that reference Radical Guide to Bonds: Summary – Getting into Bonds:

Comments

The comments to this entry are closed.