Dave, I’m thinking of a deal where the only way to get a party out was to defease certain bonds. After the defeasance, the bonds were backed by treasuries but had to still pay out a rate as if they weren’t. Why would you need luck with a set-up like that?
The fundamental basis of long term investing is diversification. if you go out and buy just one or two bonds you have huge risk. Most all of that individual issuer or company risk is diversified away with 20 holdings or more.
But if you know for sure which 2-3 stocks or bonds are going to do the best, then go for it. good luck with that.
hmmmm, well it looks like i was partially correct. anyway, i think people go on antibiotics too much and too often tho for unnecessary stuff. you cant deny that fact.
Thanks, DeLepp. Got excited for a minute there.
It’s all about liquidity and transaction costs, m4l.
plus it’s a leveraged play too. plus I like a building as collateral vs. some T-bill or pass history of payment to back the note
Dave, I’m thinking of a deal where the only way to get a party out was to defease certain bonds. After the defeasance, the bonds were backed by treasuries but had to still pay out a rate as if they weren’t. Why would you need luck with a set-up like that?
it’s more of a hassle but I still would rather buy commercial property than bonds right now. a 10 to 12% cap rate on a commercial ppty is real juicy.
jessi, no easy money, market knows. Prer/etm have been essentially flat since sell off.
m4l, 100K lots for corps, not munis. My grandparents had a bunch in “bearer” form.
i’ve never had a face to face conversation with a tofu humper, ever.
*rob*
The fundamental basis of long term investing is diversification. if you go out and buy just one or two bonds you have huge risk. Most all of that individual issuer or company risk is diversified away with 20 holdings or more.
But if you know for sure which 2-3 stocks or bonds are going to do the best, then go for it. good luck with that.
hmmmm, well it looks like i was partially correct. anyway, i think people go on antibiotics too much and too often tho for unnecessary stuff. you cant deny that fact.
*rob*