3 Bond Funds Walk into a Bar – Best Buy Yields 10%

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3 Bond Funds Walk into a Bar – Best Buy Yields 10%

“Do you have cherries?” my buddy Ralph asked over the phone.

It was January 2021. Sports bars here in California were closed, so we naturally turned our backyard into one.

“No,” I replied. And sighed in an honest admission. “Only beer. Lots of beer.”

“No problem. I got ‘em.”

My buddy also had a mini-keg of delicious old-fashioneds. His creations were dangerously delicious. He’d begun making and aging fine adult beverages to pass time in the pandemic.

And the maraschino cherries he brought played no small role in his cocktail’s critical acclaim.

Is it five o’clock yet? Just kidding (mostly). We are talking about maraschinos in a dividend column because we finally have some bond funds worth cherry picking.… Read more

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3 Bond Funds Walk into a Bar – Best Buy Yields 10%

“Do you have cherries?” my buddy Ralph asked over the phone.

It was January 2021. Sports bars here in California were closed, so we naturally turned our backyard into one.

“No,” I replied. And sighed in an honest admission. “Only beer. Lots of beer.”

“No problem. I got ‘em.”

My buddy also had a mini-keg of delicious old-fashioneds. His creations were dangerously delicious. He’d begun making and aging fine adult beverages to pass time in the pandemic.

And the maraschino cherries he brought played no small role in his cocktail’s critical acclaim.

Is it five o’clock yet? Just kidding (mostly). We are talking about maraschinos in a dividend column because we finally have some bond funds worth cherry picking.… Read more

Read More

My Four-Year-Old is Smarter Than This Bond ETF

“Daddy. Can you come play with me in the playroom?” my four-year-old asked.

“Sure. I’ll be right in,” I said. “Once I get done unloading the dishwasher. Would you like to help me unload?”

“No thanks,” my daughter replied. No surprise, but one day I hope to catch her off-guard.

She walked to the playroom. Barely. And reappeared.

“Daddy. You’re taking for ages.”

For ages is the equivalent of forever in our house. I think. Then again, given her level of exasperation, she could be telling me I’m taking longer than forever.

She’d make a good bond trader. With long rates rising every day, few income investors want to hold any bonds for any amount of time.… Read more

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This 7.6% Yield is Paid Monthly, Trades at 96% of Fair Value

High-yield bonds have never paid less. Which is too bad, because let’s be honest—dividends are the reason we income investors wade in “junk bond” waters in the first place.

Fortunately, by being selective rather than lamestream, we can double our existing high-yield bond dividends. Nothing fancy, either. We sell the unselective ETFs and buy the ones with proven bond investors at the helm.

Before starting, let me make one huge point. It is true that almost all actively managed equity mutual funds aren’t worth the management fees investors pay. But some actively-managed bond funds most definitely are worth it.

The ETFs we would be selling are the two most popular high-yield bond ETFs.… Read more

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