Corporate Bonds -- Help!

[Vladd297]

1. Does anyone know of a source that would help an investor make informed decisions about which corporate bonds to buy, i.e. an objective analysis on the financial situation of a certain company. I'm talking about something like what the Bowser Report is for penny stocks.

2. Also, is there any website out there that states (charts?) the default rate of companies within any certain year and any certain financial rating (i.e. AAA, AA, A, BBB etc...).

I am also interested in understanding the cycle of the bond market so if anyone could provide sources for further help, I would greatly appriciate it.

 

[Vladd297]

Is there also any place where I can see charts of particular corporate bonds?

Thank you!

 

[Rhody Trader]

I don't specifically know of any corporate bond advisory services (which isn't to say there aren't any, I just wouldn't know), though someone like S&P or Moody's might have the type of information you seek.

As for charts, if a bond trades on an exchange you should be able to get a chart for it if you have the proper symbol. Try the exchange websites.

 

[Vladd297]

I looked up the rating websites but they seem to offer for a pretty high price. I assume this from the fact that if you want to become a customer you have to call them and talk to a representative. If the pricing was simple and relatively low (for the general customer interested in bonds) they would just post their prices on their website. I could be wrong in my assumption and i might get around to calling them eventually so thank you for your suggestion.

If anyone has any other sources for help on purchasing corporate bonds wisely I would greatly appriciate it!

Thank you.

 

[raysor]

I have found it very difficult to get info. on corporate bonds (UK). The prices seem very wide compared to gilts and there is a lot of demand. Several corporate bond investment funds are due to be launched in the new year so presumably they are buying bonds now. Some bonds have minimum purchase quantities (£50k) and others are not traded on the market, due to lack of retail interest (or maybe the minimum order quantity). Things to note are: Time to redemption and moodys rating (or S&P) and of course coupon and price. You really want to buy under par or near par and also take note of the days accrued interest, which you have to pay for. Then check flat yield (which is usually given net of various tax rates) and the redemption yield. Also make sure there are no redemption calls or puts involved. If you are UK it may be worth looking at the Building Society PIBs( Permanent Interest Bearing Shares). But note these are undated (perpetual).
You could also look at ETFs, but due to their tracking criterai these are usually weighted to the Financial sector, which may give too much risk.
Have a look at my website, I am trying to get info. on convertibles and straights so anyones input would be appreciated, and in turn this may help others.