Had to happen.
I am a bond guy after all, when I first started my investment careeer some years ago it was in a boring “bond ladder”, nothing fancy, guaranteed return.
Then times changed, life changed, financial market changed and all of a sudden bonds and fixed income is not a play anymore.
This doesn’t mean that it will not come back in the future (my bet is that it will and it will change the dividend play a LOT), but thanks to some friends who know a LOT more than me, I managed to pinpoint 3 more bonds (corporate), that seem a sensible investment for a portion of the portfolio. Yields are not massive, we are talking 2.5% net at best, but it’s a way to park some cash that right now I do not feel like investing on the market.
The three stocks are a variable rate bond (IT0005120313), a Zero coupon made by GE through its Italian bank (IT0001304010) and a Fiat-Chrysler (XS0305093311) corporate bond.
The former will expire in 2017, so basically I am going to have it for 1 and half years, by then interest rates will be higher (I think) and there will be better opportunities.
Adding some bonds balances the portfolio a little, and provides additional diversification. I really wanted to add some national or world bank bonds to the PF but it’s not possible to find decent returns right now.
Another good point is that from the fist and the last bond I will be recording a capital loss, which I can use to offset some capital gains in the future.
And you out there? Nobody got his hand dirty with some good old bond?