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All-Star Bond Investors or Traders


“All-Star” is what we like to call an advanced bond investor or trader. You’ve been actively managing your own fixed-income portfolio for many years. All-Stars have in-depth knowledge of yields, corporate debt structuring, and macro- and micro- economic trends, and the capability of using this knowledge to anticipate risk and opportunity. All-Stars constantly use the three-way relationship of risk, reward and economic market pressure in their analyses. All-Stars are extremely proficient in managing a bond portfolio with various issues, issuers, maturities, and yield calculations. They have extensive knowledge not just of the bond market, but also inter-market dynamics across different types of securities.

Advanced bond investors are well capitalized and wield the extensive knowledge to use their capital wisely. Although they may have deep pockets, they may chose to use margin and margin release at strategic times. All-Stars are fully aware of the various risks associated with fixed income securities, possess excellent risk management skills, and reposition easily and fluidly as needed. If an All-Star decides to sell a bond investment prior to maturity, they fully understand a capital loss may result. All-Stars understand upfront how all possible outcomes will affect not just portfolio holdings but also order placements. They track industry events assiduously and adapt as the marketplace evolves. Monitoring the relevant news of any holdings and their sectors is second nature to them. All-Stars actively manage risk and potential opportunity associated with news, market pressures and corporate actions. Even though All-Stars already know a great deal, they are always interested in learning and always re-adjusting their portfolios.

As an All-Star Bond Investor, here’s how you can round out your skills:

  • Gain knowledge to maximize any tax advantages inherent in your fixed income investments
  • Obtain a full understanding of marketplace liquidity and use it when evaluating new investments
  • Understand special clauses such as call or put options on bonds
  • Research the possibility of hedging other investments with your bond portfolio
  • Use duration to anticipate price changes in your fixed income portfolio
  • Evaluate special-issue bonds with no secondary market

All-Star Bond Investors can improve by:

  • Continuing to use TradeKing’s Bond Finder for investment opportunities
  • Continuing to find investment opportunities with TradeKing’s Fixed Income Center
  • Reviewing bond strategies geared to the All-Star skill level
  • Implementing complex laddering if suitable for your portfolio
  • Anticipating how Fed actions may impact bond holdings
  • Placing coupon payments in a savings account for future annual bond investments
  • Anticipating and planning for all possible outcomes for your investments, not just the positive scenarios
  • Inquiring members of the Trader Network to explain their investing analysis
  • Challenging members of the Trader Network with an alternative point of view
  • Attending or watching TradeKing’s free educational webinars, geared to the All-Star skill level

All-Star Bond Investors should steer clear of the following:

  • Resist the urge to invest more than a fraction of your holdings (if any) in junk bonds
  • Do not invest in any bond if you do not completely understand its features or tax implications





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