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Bond Investing - Beginner
Can anyone recommend a book that would be good for a beginner to learn about bond investing. I am aware bonds are not attractive at the moment but when they are I would like to be prepared.
Thanks in advance.
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8 comments
Thanks for the responses. A friend lent me one after i posted and after reading it I understand what you mean now about waiting a long time. Interest rates rise then bond prices fall. As they are at pretty much zero now i guess its a one way deal. I will pass .... stick to equities.
Cheers
Hi big.gav,
It's a (little) bit of a simplification to take the view that as prevailing interest rates rise bond prices fall, but I agree sentiment generally is that after a long bull run bonds are likely to have a thin time in the short to medium term.
This said, I personally like to keep some fixed income exposure (as well as other assets such as property and precious metals) as part of a diversified investment portfolio. Rather than buy individual bonds (I used to work in fixed income and it's not the most transparent or liquid market for the PI), I prefer to take my exposure through a fund with a decent manager. I hold several, of which the Henderson Inst Long Dated Corporate has a decent 4/5* Morningstar rating and has done well for me over the years. Here is a link to their current fact sheet:-
https://www.fidelity.co.uk/investor/research-funds/fund-supermarket/factsheet/summary.page?idtype=SEDOL&fundid=0747567&UserChannel=Direct
Plenty of others to choose from depending on the geographic market, sector or level of risk/return that you want to tap into.
Best,
Gus.
Thanks for the info Gus, I shall take a look.
Cheers.
Hi Gus
I know you like to hold for the long term, but even a good manager can't beat the inevitable unless he can go short or move internationally. Take your profit, pay the tax. Invest in the list of Equity Income funds listed in last Saturday's Telegraph money pages. Not advice just observation!!!!!!
Regards Ken
Hi Ken - one of the benefits of being in for the long term is that eventually you are proved right (well usually, there are exceptions). I tend to squirrel away all sorts of junk in the expectation that on balance the sum of the parts goes roughly in the right direction. Fixed income product is one of my less esoteric holdings ...
Best,
Gus.
Touch'e
"I am aware bonds are not attractive at the moment but when they are I would like to be prepared."
You might have to wait many years for that...
https://www.safaribooksonline.com/library/view/ft-guide-to/9780273791812/ the FT series of books are usually a good place to start.