Opinion

John Wasik

Bond funds: Opposites that attract higher yields

Dec 2, 2011 22:00 UTC

Dec 2 (Reuters) – With the Federal Reserve keeping rates
low and casting a cautious eye on Europe, is there still a way
for investors to achieve higher yields?

There are many options — from municipals to A-rated
corporate bonds to emerging market bonds. Sometimes funds that
are at opposite ends of the risk spectrum can add to your
portfolio diversification while boosting yield. Two often
overlooked choices are, Ginnie Maes and high-yield corporate
bonds.

While they’re dissimilar when it comes to default risk,
they could both be paired up in a diversified income portfolio
to achieve returns above U.S. Treasuries and money-market
accounts.

Ginnie Maes are mortgage-backed securities — but not the
kind that plummeted in value during the 2008 meltdown. That’s
because they are backed by the Government National Mortgage
Association, a full-fledged U.S. agency that has the full faith
and credit of the U.S. government.

They provide an even safer yield than the securities issued
by Freddie Mac and Fannie Mae, which have an implied guarantee
from the government, but are part of agencies that were
publicly-traded prior to their takeover by the government
during the housing collapse.

Why OWS Scares the bejesus out of GOP: http://t.co/xxnSkDld

Dec 2, 2011 14:18 UTC

Why OWS Scares the bejesus out of GOP: http://t.co/xxnSkDld

World AIDS Day: Sobering Statistics About a 30-Year Epidemic http://t.co/LiEPsPRh

Dec 1, 2011 20:28 UTC

World AIDS Day: Sobering Statistics About a 30-Year Epidemic http://t.co/LiEPsPRh

Schumer: Democrats can gain Senate seats in 2012 election: http://t.co/KeBKp5rO via @AddThis

Dec 1, 2011 14:38 UTC

Schumer: Democrats can gain Senate seats in 2012 election: http://t.co/KeBKp5rO via @AddThis

A Look at America’s Geography Shows That the Tea Party Is Doomed http://t.co/bqJQKMwi

Nov 30, 2011 14:37 UTC

A Look at America’s Geography Shows That the Tea Party Is Doomed http://t.co/bqJQKMwi

How to help the jobless. My latest Reuters column. http://t.co/AdmLZto0

Nov 29, 2011 20:23 UTC

How to help the jobless. My latest Reuters column. http://t.co/AdmLZto0

How to help the jobless: http://t.co/mQvv9TYP via @reuters

Nov 29, 2011 20:22 UTC

How to help the jobless: http://t.co/mQvv9TYP via @reuters

A protocol for the newly unemployed to weather the storm

Nov 29, 2011 15:41 UTC

By John Wasik

(Reuters) – Two of my friends lost their jobs in the last month. One had worked for a large computer services company for 31 years. Another was an information technology manager whose position was eliminated in a restructuring. Both men are in their fifties.

Having been laid off more than once, I have a certain protocol I share with friends. I hope it’s of value to them; I know it’s paid off for me. Here’s the plan that has worked for me in the past:

– The best strategy is to be ready for a potential layoff with several months of cash, no credit card debt and an up-to-date resume. But don’t lose heart if you’re one of the more than 15 million unemployed and 1 million “discouraged” workers who can’t find openings suitable to their skills and have stopped looking. There are strategies to lessen the pain and to improve your chances of finding a new job.

American Airlines’ parent files for Ch. 11 bankruptcy protection; CEO steps down http://t.co/LP2dp0kk via @washingtonpost

Nov 29, 2011 14:50 UTC

American Airlines’ parent files for Ch. 11 bankruptcy protection; CEO steps down http://t.co/LP2dp0kk via @washingtonpost

The Looming GOP Tax Hike | AlterNet http://t.co/xhMtBWNK

Nov 28, 2011 14:24 UTC

The Looming GOP Tax Hike | AlterNet http://t.co/xhMtBWNK

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