Top 5 High Quality Corporate Bonds

 

By Rom Badilla, CFA

August 9, 2012

Tired of Owning Lower Yielding Treasuries? These Corporate Bonds are Higher Quality on the Investment Grade Spectrum with the following criteria:

  • Rated AA and AAA by Standard & Poor’s and provide a Yield Pickup to U.S. Treasuries (Investment Grade ranges from AAA to BBB- while High Yield and Speculative Grade range from BB+ to CCC-)
  • These bonds are actively traded in two-sided markets (minimum bid and ask size of $5,000) and must have a deal size greater than $250 million to ensure sufficient liquidity
  • Sample does not include Financial bonds which typically exhibit greater yields that usually translates to more yield volatility and hence greater price risk despite similar ratings
  • Fixed coupon that pays semi-annually
  • U.S. Dollar Denominated
  • Groups separated by Maturity, 4 to 7 six years and 7 to 10 years
  • Sorted by Ask (Offered) from Highest to Lowest

Information and quotes provided by Trade Monster’s Bond Trading Center

 
 
 

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  1. [...] Top 5 high quality corporate bonds for individual investors – Walmart, Pfizer, GE, Merck, Procter and [...]

 
 

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