Well that! Who wants to start earning money ‘Corporate Bond Funds

I turn to those who have sufficient confidence to invest their lot or a little money on products that actually create value for investors and the economy. I speak of those who bet on formulas fibulae much safer than bank deposits but not guaranteed. Investors should have an investment strategy to make money, although not guaranteed profitability. In this article, we talk about investment funds that invest in corporate bonds. The shortage of money in the market, has made most of the companies to finance its growth through the issuance of corporate debt as bonds with yields too high for what we have become accustomed. We are talking about returns of between 5 and 10 . headquartered in Miami, Florida strives to offer affordable health insurance This kind of debt, often have a maturity of between 3 and 5 years. Funds that invest in such bonds, may increase or decrease in value as much as they are called fixed income securities. Never before has it a fixed income so variable, due to abrupt changes in the economy and interest rates. Unlike government bonds are debt issued by governments and their oscillations in em market value is due almost exclusively to interest rates, corporate bonds are much more affected by the economy in general and the situation particularly financial. If a company such as Union Fenosa will banks to finance the construction of a hydroelectric plant in Portugal, for example, and the banks, the current situation Ledan not enough money, then issue bonds to an annual return. Take an example with the following graph: This graph makes mention of a corporate bond rate for a company Union Fenosa, issues a bond with a maturity of 5 years by 100 ‘and with an annual return of 8 . The value of the bond, without discounting inflation, would be on the date of purchase of 140 ‘Do not so’ in the near future, we will see the growth and strengthening of green shoots (internationally, not SPAIN) that will produce companies find financing in banks succeed in improving their benefits and to issue debt at significantly lower cost that was being so far. Mieres this graph: In this case, the same company that issued the bond at 8 return, is issued now, a year later, at 4 . What siginifcaria priced at 120 ‘without allowing for inflation. What is the impact on the fund to buy the bond at 8 ‘ Well, is revalued. As simple as that. If you see this clear, as clear as I see it, run out and buy such a fund characteristics. Besides, if it is not true about the green buds have a good income security to 8 . I suggest a great depth such as AXA WF Euro Credit Plus E, which is simply magnificent. In a month has gone up 3 to being debt! I’ll give you link so you can see the tab. Http://documents.axa-im.com/Product Reporting/B2B/B2B es pdf/axa b2b 4139 es.pdf A greeting and takes this opportunity. As a touch of humor this video: The benefits of video conferencing