“Financial Performance” is a term used to describe how well a business is doing in terms of earnings and cash flow. In our last blog post we looked at how to analyse financial statements and identified some ratios that we should pay attention to when assessing the financial health of a company. Our previous blogs
“Cash is King” when it comes to debt investing. As a debt investor, you must always seek information to help you understand the risks involved. Debt investors should ask questions such as: Will the company I am going to invest in have the cash to pay me regular coupons? Will the company I am going
Price and Yield have an inverse relationship – when one goes up, the other comes down. In our previous blog, we defined yield and described how and why yields differ with changes in the risk-free rate. But did you know that there are actually several ways that you can measure yield? Let’s start with the
As of 2020, the European High Yield Corporate Bond Market was worth €508 Billion. In just 10 years the large and well-established asset class continued to develop with the value of outstanding bonds growing more than 370%! When compared to the US High Yield Market, however, the European and Sterling High Yield markets are relatively
Did you know that some high yield bonds give different coupon payments? The High Yield Market has different types of bonds which is useful when achieving a diversified portfolio. So far, our blog series has covered the following: What is a corporate bond? What are credit ratings? What is creditworthiness? Bond security Bond seniority Different
If the UK Government were to offer you a risk-free sovereign bond that yields 4% over 10 years – would you accept? Sovereign bonds are a low risk investment opportunity. In this scenario, you agree and are now earning interest on your sovereign investment at a rate of 4%. Now let’s say a company like
Investing in corporate bonds has proved to be an attractive investment opportunity over the last two decades, yielding high returns for keen investors. The bond industry is a multi-trillion dollar market where people invest in all types of debt which can hold good and bad characteristics. Now let’s imagine you and your friend have both
I read a funny conversation on Twitter the other day: would you rather have £1,000,000 or a perfect credit rating? Before I start, you don’t have to ask me twice – I’m taking the £1M, buying a pint and burger from the airport, and booking a one-way ticket out of Birmingham. What made me laugh
Hello and thanks for choosing to read this blog series on Bonds! If you don’t know anything about the Bond Market then trust me keep reading. My aim is to explain the basics of bonds using topics from the WiseAlpha Bond Academy, a free course that currently offers five hours of accredited CPD activity. And
When investing, it’s important to manage your risk, and diversification is among the principal tools available for doing so.
Corporate bonds, historically seen as complex financial instruments for large institutions, are about to have their moment. So what will it take for these securities to become more commonplace among retail investors?
Auto-enroll into the company pension, pay in our monthly salary contribution and check back when we reach retirement age.
Fixed income securities can take many forms, but the two largest bond markets open to investors are government-issued bonds and corporate bonds.
Finding a SIPP that’s right for you can be a confusing and long-winded process.
In recent years it’s become clear that the developed world faces a retirement crisis.
Investing in a SIPP or SSAS can provide you with considerable control over where your retirement funds are deployed…
Like so many aspects of our lives, investing has been transformed in recent years.
Jargon, the biggest conversation killer in financial history.
You’ve probably heard the term “SIPP” doing the rounds, but what does it mean? And why don’t you have one?
Private industry is characterised by its adherence to the profit motive.
It’s an old cliche to say the best time to start saving is now… but it’s true, especially when investing money that you hope to use in retirement.
Interest rate risk is among the principal risks of investing in bonds…
When investing in a company you are joining a diverse community of investors, providing finance through a range of channels.
Current savings rates on offer by banks and building societies are at record lows.
Few people are aware that they have another less obvious enemy to contend with when it comes to growing their wealth. few people are aware that they have another less obvious enemy to contend with when it comes to growing their wealth…
Recent figures from the Bank of England show CPI inflation of 1.9% continuing to outstrip the average savings account rate of 1.4%.
Over the past decade, many areas of our lives have been impacted by the rise of technology. Technology has changed how we shop, date, eat and bank, offering services and making products that are simpler, cheaper and more convenient than ever. This revolution has also liberated us. Startups have loosened the grip of multinational corporations,
Bonds are an excellent choice for investors seeking stable, regular income. And yet, people often get confused about how bonds prices can change.
With corporate bonds now playing a central role in financing growth in the world economy, this asset class has become one of the most important in the world.
The term ‘investing’ can be confusing. It often gets mixed up with all sorts of complicated jargon.
Popular belief is that most of the financial world lives within the stock market, yet the global debt market is almost double the size of the stock market.
Investors who reinvest their coupons reap the most benefit from their bonds.
Corporate bonds have traditionally been an asset class mainly reserved for institutional investors with only a limited selection of bonds available to private investors. Now that WiseAlpha has liberalised the wonderful world of corporate bonds for everyone, we explain in this article why corporate bonds are, in our view, a superior asset class to equities.
Fixed income is the world’s largest asset class.
The old maxim is true, slow and steady wins the race.
Marketplace or P2P lending has grown considerably in recent years…
Senior Secured, High Yield and Perpetuals, what types of debt are we talking?
Wholesale bonds, retail bonds and savings bonds, all stand in the corporate bonds market, but how does their impact differ?
Wealth accumulation and preservation is important from a young age.
From the day of issue, bonds and loans begin to accrue interest.
All investments involve risk, and bonds are no exception. Some of the main risks relating to bonds will be discussed in this blog.
Knowing the difference between different types of bonds could save or make you money.
What if you could diversify your portfolio into another established asset class and generate annual income rates of between 3–11%?
As it turns out, bonds are much simpler than investing in shares and can be a less risky.