• 14

    Nov

    Safe Bond: Freddie Mac

    Safe Bond: Freddie Mac Safe bond is the fixed incomes securities that guaranteed by government agent i.e. Ginnie Mae. The bond is same with Government bond from securities side. The investor should not worry investing in this bond. The issuer or safe bond is Freddie Mac or FHLMC (Federal Home Loan Mortgages Company) a stated company that provide mortgages loan. The process of issuing safe bond is complicated. The GNMA issue the loan to the bank. The bank will make mortgages that has guaranteed by GNMA. The bank construct to loan to the other meanwhile the GNMA will guarantee the loan. Besides GNMA, the other safe bond guarantors are FNMA and FHLB. GNMA receive cash from the bank. The poll money from bank divides to different maturity bond or trenches. Since this bond is guarantee, we c
  • 12

    Nov

    Alternatives EE Series Bond

    The first saving bond in US is EE Series. EE Series seems like zero coupon bond or accrual income. You cannot receive coupon periodically or semi annually. You must wait until this bond mature. Alternatively, you could sell the bond and get capital gain in the middle of maturity with condition the temporary price is high. You can buy this bond a half of face value e.g., you just need 25 bucks to buy @ 50 bonds EE Series. You can buy saving bond at local bank near your home. Alternatively, you can buy saving bond through internets. The EE Series has the maturity term ranging 8 to 17 years. In addition, the investor can further the term until 30 years. The EE series has strengthens that can reduce your tax. We realize the EE series has weakness since it does not pay periodically. Therefor
  • 12

    Nov

    Brady Bond for Global Investor

    Brady bond is a kind of bond that swapped for an out standing loan to Less Development Countries (LDC). Nicholas Brady (former US Treasury Secretary) found the Brady. This bond is securitization debt of LDC mean this bond guarantee from debt default. Brady constructs the swap for default Latin America Treasury bond. In 1980s, the volume trading at Brady bond was about two billions dollar. The volume trading increase almost three times in 1997. This bond success to attract the investor. In 1988, almost $ 210.5 billion help LDC to finance their budget under Brady plan. The country, which participated, is Brazil, Venezuela, Argentina, Russia, and Mexico This bond is anticipated from default Treasury bond. In 1999, Russia defaults because they could not pay the obligation. The Russia defaul
  • 10

    Nov

    Inflation Bond 101: Bond that could protect you from inflation

    Inflation bond or I series Bond is the one of the saving Bond beside EE series and HH series. This Bond is resist from the high inflation rate. Inflation Bond is the newest saving bond, which was introduced in September 1998. The bond is base on inflation index. This bond is quite cheap. The price of I bond ranging to $ 50 to $ 1,000. The government sells I bond suit with face value. E.g., you must provide $ 50 for @ $50 I bond face value. The local bank usually provides this I bond. Alternatively, you can buy through internet. The I series has specific useless for financing college kid. The government will not charge tax for this investment. Therefore, your return is still higher. Both the I series and the EE series are almost same. Both of them have no coupon rate. I bond does not pro
  • 9

    Nov

    Investing: Bond Fund vs. Bond

    The bond is securities that give fixed income to investor. Bond has variety kind like Government bond, Municipal Bond, Corporate Bond, Insurance Bond etc. Unfortunately, bond is expensive so small investor could not buy that investment whereas bond is fits for long investment like pension fund, 401 (k), IRA etc. Most of investor bond come from company like insurance company, Mutual Fund Company, financial company, etc. Alternatively, you can buy bond fund. This investment is cheaper than Bond. Your money and other investment could buy any bond. Investment manager will organize investor money in order to make portfolio. They will buy all kind of bond that has prospectus profitable. Some bond fund offered specifies bond like municipal bond fund, government bond fund, corporate bond fund, et
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