This article was originally published in Barron’s. To read the full piece, click HERE (subscription required).
Fixed-income investments were in the trash heap on Tuesday, but experts say there may still be some good values to be found.
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Corporate bonds may be compelling buying opportunities as well, particularly for investors looking for returns that are a little higher. Investment-grade securities as well as the higher level of so-called junk bonds could be good options. So are convertible bonds, fixed income securities that can be eventually converted into stock.
“You can buy names that resonate in the equity market and get a nice fixed-income return. There are certainly opportunities in corporate bonds,” said Jonathan Birnbaum, founder & CEO of OpenYield, a recently launched online bond marketplace geared toward retail investors. Birnbaum said that investment-grade corporate bonds are of most interest to individual investors but that some traders may be tempted by the “more equity-like volatility” of high-yield bonds.
