Sep 242013

I want to buy some corporate bonds. Verizon recently issued a record amount and I’m thinking about getting in on the 10 year 5.15% tranche before they become too popular 😕 Making over 5% return a year doesn’t sound too bad 🙂 On a risk adjusted bases this BBB+ bond offering is probably one of the best investment opportunities out there today \(^_^)/

What Is A Bond?

(Besides a spy who drinks martinis and works for the British Secret Services)

A bond is a loan between a lender and a borrower. It’s basically an I.O.U. contract 🙂 Normally consumers borrow from banks. For example someone gets a $10,000 loan from BMO so they can buy a car. A bond is similar, but the other way around 😎 which means the bank borrows money from the consumer and of course pays interest to the consumer. Sounds like a sweet deal doesn’t it? 😀 Anyone else interested to buy some bonds with me? I’ve only bought bond funds in the past, but never individual names before. But hey, we learn by doing 🙂 and sometimes that means stepping outside of our comfort zone. quote-alone-neverbeen-follows-crowd

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