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BBB Corporate bond yields

Posted on 5/6/23 at 2:53 pm
Posted by Skervix
Member since Aug 2018
219 posts
Posted on 5/6/23 at 2:53 pm
Vanguard is offering BBB corporate bonds, yielding 8% for a year and 11% for 5 yr.
How often do these default?
How many of yall snagging these up? Seems anxiety-inducing to me. But 11% though.
Posted by slackster
Houston
Member since Mar 2009
91362 posts
Posted on 5/6/23 at 4:02 pm to
About 1.5% default rate over 5 years.
Posted by Jag_Warrior
Virginia
Member since May 2015
4292 posts
Posted on 5/6/23 at 9:04 pm to
Going that low it would be company dependent for me.
Posted by Skervix
Member since Aug 2018
219 posts
Posted on 5/6/23 at 10:07 pm to
I see Boeing, Marriott, GE, Verisign, HCA.
This post was edited on 5/6/23 at 10:08 pm
Posted by Jag_Warrior
Virginia
Member since May 2015
4292 posts
Posted on 5/7/23 at 4:12 pm to
BBB is one notch from junk bond territory. Whenever you’re getting a really outsized yield, there’s a story behind it. A small taste might be OK. But like with high div. stocks, you just have to be careful when you chase yields.

BTW, were those new issues that you saw or current issues?
Posted by thelawnwranglers
Member since Sep 2007
42036 posts
Posted on 5/7/23 at 4:18 pm to
quote:

Vanguard is offering BBB corporate bonds, yielding 8% for a year and 11% for 5 yr.


Has a fund or individual company bond investments


I don't have enough money to diversify risk if individual
Posted by bovine1
Member since Dec 2004
1358 posts
Posted on 5/8/23 at 10:51 am to
I just looked at them because I'm doing my weekly bond trading. I don't know if you noticed but that Webster Financial bond yielding 8.5% has a minimum order 0f 100. The highest yielding BBB's at Vanguard available to little people yield 7.85% with a 10 bond minimum and 7.3% with a 2 bond minimum.
Posted by bovine1
Member since Dec 2004
1358 posts
Posted on 5/8/23 at 11:24 am to
BBB+ Huntington Bancshares maturing 08/06/2024 yielding 9.25% is interesting. People are convinced every bank in the US is going under. If you are a blood in the streets kind of investor these bank bonds and ETFs like SRLN are interesting.
Posted by bovine1
Member since Dec 2004
1358 posts
Posted on 5/8/23 at 11:25 am to
Minimum order is 2 on those H B Bank bonds.
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