Bond Veteran Unveils A Stock-Beating Strategy
Conventional wisdom jibes with the notion that bonds cannot outperform stocks over a distant horizon unless you’re toying with junk bonds. But there’s much more beneath the surface. I feel very fortunate to have Paul Gaylord, a securities broker from Houston-based Tri-Star Financial, who promises to debunk this investment myth, but he’ll first warm us up with some background information on a special type of bonds that large institutions and the ultra wealthy invest in, namely Collateralized Mortgage Obligations (CMO.) This article is technical and lengthy, but fascinating. Paul is available for questions if you’re interested to learn more about CMO. Emphases in the article are mine.
Most of the world’s investors believe the myth that they can’t get a high yield on bonds unless they invest in Junk bonds. They take the risk of losing their initial investment if the issuer goes into default […]
Original post by Financial Jungle Guy