The ins and outs of investing in corporate bonds

Corporate bond issues have dominated the New Zealand investment landscape over the past year, with billions of dollars raised from investors.  Money has been raised by many household names including energy companies and banks.

While these offers have been lapped up by retail investors many institutions and commentators have rubbished the asset class. In this Investment Insights paper NZ Funds explains corporate bonds and how they work. It also explains why investing in these bonds makes sense at this point in time.

However, it also notes not all bonds are the same and investors need to be able to work out the good ones, or ones which offer the best risk/return equation from others which get closer to being junk.

"One might 'second guess' an investment manager who advocates hedging equities and buying bonds in the middle of a credit crisis. nevertheless, this is largely what we have done. As with any good story, however, there's a twist."

To find out more about corporate bonds and NZ Funds' twist read the latest issue of Investment Insight here.

First visit? Then sign up to our Weekly Newsletter or subscribe to the NetProphet RSS feed. Thanks for visiting!

Comments from our readers

No comments yet

Add your comment:

Your name:
Your email:	Not displayed to the public
Comment:
Comments to NetProphet go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Anti-spam verification:

Type the text you see in the image into the field below. You are asked to do this in order to verify that this enquiry is not being performed by an automated process.

Email Updates Sign up now

RSS Feeds View the list

Twitter Read our tweets