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A popular investment strategy for an investor seeking a predictable cash flow is bond laddering. Bond laddering is in essence building a portfolio of bonds with staggered maturity dates. For example, the portfolio can consist of bonds maturing in three, five, seven and ten years. You can...

It's widely known that the return you earn is a function of the risk you take. Higher risk equals higher return. Lower risk equals lower return. But what is high and what is low? How do we determine a high return vs. A low return? That is heavily influenced by prevailing market conditions...

One of the most overlooked features of a bond is a make-whole call provision but one can be forgiven for this because rarely does an issuer exercise this option. But however rare it is, it does happen. Just recently Macy’s (the famous retail store in the U.S) used this provision to early...

In the investment world, the terms credit, credit risk and credit quality are repeatedly used when speaking about different asset classes, investment types and issuers of debt. But what do these terms mean and how should they factor into our investment making decisions?

In its broadest...

Bonds are fixed-income investments that many investors use for a steady stream of income, especially during retirement. When buying a bond there are two critical numbers that you will encounter- the coupon rate and the yield. It is important to understand the difference between these two...

Simple can be considered as boring, but sometimes simple is exactly what we need. I recently met with a prospective investor (virtually of course) who had gotten badly burned in the stock market. After licking his wounds, he decided he was ready to invest again, but after his bad...

Bonds have always been preferred by investors who are looking for predictable income, potential capital appreciation and relative safety. Nowadays, many investors are wary of the current conditions and have been afraid to take on any risk (relative to equities). This is the reason that...

A bond is a debt instrument whereby an entity can raise capital to finance their operations by attracting investors to participate. Simply put it is a loan to the entity (referred to as the issuer) and will have certain contractual features such as principal amount (Face Value), rate of...

Debunking the myths of premiums and discounts: How Bond Prices Work

Over my long 15-year career as an Investment Advisor, I’ve realized that many bond investors are still unaware of how to use bond prices to their advantage. Today we are going back to the basics - specifically as it...

Investing in a low interest rate environment can be very challenging. Investors are actively seeking new types of instruments to place their hard earned life savings.  They will sometimes overlook many obvious risks just for the sake of earning high returns and it turns out that there are...

Important Resources

Understanding Bonds

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Biggest Investing Mistakes Right Now

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How Mutual Funds Work

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