Is there a bond bubble? There’s certainly more froth than not, with investors recklessly reaching for the riskiest of yields.
But there’s one last 10% dividend on the board worthy of our consideration. It’s available thanks to investors’ misunderstanding (and laziness) – we’ll discuss details in a minute.
But first, let’s review three key rules that will help us navigate this budding bond bubble.
Rule #1: Maximize Your Upside
Our favorite second-level thinker Howard Marks noted in an op-ed for Barron’s that Netflix (NFLX) bond buyers – who recently scooped up €1.3 billion of Eurobonds paying just 3.625% – might have exposed themselves to significant downside without much upside.…
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