The Money Farm Team

A convertible bond is one that contains an embedded derivative that permits the bond to be ‘converted’ into equity. The bond investor has the option to convert his or her bond. When a bond is converted, the bondholder usually receives equity (in the form of shares) or cash equal to the market value of the […]

While the vast majority of financial instruments create a financial asset in one entity and a financial liability or equity instrument in another entity’s accounts, a single financial instrument can create a financial asset in one entity and a financial liability and equity instrument in another entity’s accounts. When a company issues a convertible bond, […]

Corporate bonds with high ratings are a stable source of income for a portfolio. They can assist you in accumulating funds for retirement, college, or unexpected needs. Is it worthwhile to put money into corporate bonds? Bonds are often more secure and less volatile than equities among the numerous types of investments (stocks & shares). […]

This year’s corporate bond investments have been a mixed bag. Riskier investments such as high-yield bonds, bank loans, and preferred securities have not only posted positive returns, but have also been among the best-performing fixed income investments through mid-November. Is it still a good time to buy corporate bonds? Bond Fundamentals Government debt in the […]

Corporate bonds are a great option for investors who want a steady but greater income from a safe investment. When opposed to debt funds, corporate bonds are a low-risk investment vehicle since they guarantee capital protection. These ties, however, are not completely safe. Corporate bond funds that invest in high-quality debt securities can help you […]

Inflationary pressures usually result in higher interest rates and lower corporate bond prices. Investors are concerned that high inflation may undermine the purchasing power of their corporate bond investments. That is, when bonds approach maturity and are paid off at par value, the money returned to an investor will be worth less than the cash […]

Municipal bond interest is tax-free in the United States, however there may be state or local taxes, or both. Be aware that if you receive Social Security, your bond interest will be recognized as income when determining your Social Security taxable amount. This could result in you owing more money. Municipal bond interest rates are […]

Municipal bond interest is tax-free in the United States, however there may be state or local taxes, or both. Be aware that if you receive Social Security, your bond interest will be recognized as income when determining your Social Security taxable amount. This could result in you owing more money. Municipal bond interest rates are […]

Municipal bond interest is tax-free in the United States, however there may be state or local taxes, or both. Be aware that if you receive Social Security, your bond interest will be recognized as income when determining your Social Security taxable amount. This could result in you owing more money. Municipal bond interest rates are […]

Tax-exempt status — The majority of California municipal bonds are tax-exempt, while some specialized bonds are not (all are exempt from State of California personal income taxation for California residents, however). The designation of a bond as a “tax-exempt California municipal bond” is contingent on the bond issue’s intended purpose. California municipal bonds provide a […]