Category Archives: Bonds

Selling Bonds

Bond Investing TipsAnother bad day. Lately, we’ve had more bad days than good ones but the market is still only a couple of percentage points off the highs. We’re pretty much where we were a month ago. Today, I finally sold my American Express bonds. One cannot simply put in an order to sell bonds. First, you request a “bid.” Then you have to wait for somebody to offer one. Then you have to decide whether or not you want to accept it. This all takes time and today was the first day in a week that I had the time to sit before the computer and wait. So they’re gone, and the price I sold them for would have given me a yield to maturity (if I had waited for them to mature) of less than 3%. Since I can take the money and invest it in MetLife Stable Value for 3%, this was the smart trade. Sooner or later, interest rates will be higher. Time enough to buy more bonds when that happens.

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