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Last week, Barclays announced the call of its 7.75% Perpetual Additional Tier 1 (AT1) Capital Note with a September 15, 2023 call date. This means that noteholders will get back their principal (i.e. face value) and the interest earned between June 2023 and September 2023. Today, we’ll...

Bonds and Real Estate are two unique investment options allowing you to diversify your portfolio while proving to be a relatively safer investment than stocks, cryptocurrency, and some other assets. Both bonds and real estate are steady investment options with relatively low volatility...

One of the most confusing components of “bond math” is the pricing. Like most assets – the price is a major determinant of your total return. Today we look at the pricing of fixed income instruments and how your total return is calculated. We present several concepts that are simplified...

For new investors the process of buying bonds can be complex, as it involves various terminologies and buying scenarios. Today, we will discuss buying bonds at a premium versus a discount. Let’s start at the beginning, when a bond is issued, it is available for purchase at its face value...

By far the most frequently asked question we get about bonds is: what is the difference between the yield on the bond and the interest rate on the bond? Today we TRY to demystify this source of universal confusion. The article contains examples for illustration purposes only and statements...

Many bonds are issued today with a call feature which means they can be redeemed or repaid by the issuer prior to their scheduled maturity date. However, the early redemption of a bond is not automatic and highly depends upon the unfolding of events at the issuer level, specifically, and...

Daily I get calls from prospective clients looking for more information on global or international bonds that are recommended or suggested to them. Whether the yields are high or seem low, we patiently explain the details on the bonds and how the process works. If the client is a savvy...

Our discussions on bonds continue; after learning the bond basics, today we examine how bonds behave in an environment of high-interest rates, a relevant topic given the current interest rate environment. Before moving on to how bonds behave in a high-interest rate environment, we should...

Bonds can create a balancing force within an investment portfolio. If you have the majority of your portfolio invested in stocks, adding bonds can diversify your assets and lower your overall risk. So, how do you go about adding bonds to your portfolio and more importantly, why should you...

My previous article, Bond Basics I, covered several bonds-related concepts, including Face Value, Coupon Rate, Callability, Yield-to-Maturity, and Credit Rating. However, there is still a lot more an investor should know to better understand the seemingly complex world of bonds. Today, we...