Municipal Bonds Certificates of Deposit Agency Debt Services Other Fixed Income Other Fixed Income To learn more about any of our fixed income products, please click on a link below and you will navigate directly to the product of your choice. Corporate Bonds
Corporate bonds are debt issued, typically by public corporations. When you invest in a bond, the corporation pays interest on the number of bonds you purchased, usually semiannually. Objective
Corporate bonds provide regular interest payments over the life of the bond. Who Should Invest In Corporate Bonds?
Corporate bonds are appropriate for investors seeking regular income payments. Product Features
- Attractive yields - Corporate bonds usually offer higher yields than comparable-maturity government bonds or CDs.
- Recurring Income - Since corporate bonds pay a fixed rate of interest, interest payments are usually made twice a year.
- Call Protection - In certain circumstances, such as a period of lower interest rates, corporations have the ability to repay their debt prior to the maturity date stated on the bond. Most corporate bonds provide the investor some type of protection from these early payoffs.
- Liquidity & Marketability - In the event you would need to sell your bonds before their maturity date, corporate bonds can usually be sold on any business day at their current market value. This value may be more or less than your original investment.
- Taxation - Interest and capital gains earned from corporate bonds are subject to both federal and state taxes.
- Diversity - Corporate bonds provide the opportunity to choose from a variety of sectors, structures and credit-quality characteristics to meet your investment objectives.
For more information on corporate bonds, please contact a Hennion & Walsh Municipal Bond specialist. Back to top. Treasury BondsUnited States Treasury Securities
U.S. Treasuries are sold to investors to finance the operations of the United States Government. These securities are backed by the full faith and credit of the United States government. Objective
US Treasuries provide income to investors over a specific period of time. Why Invest In U.S. Treasuries?
US Treasuries may be an appropriate investment due to their high quality for investors who seek safety and income. Features of U.S Treasuries - Income - Interest on U.S. Treasury bonds is usually paid on a semi annual basis.
- Credit Safety - U.S. Treasury securities are backed by the full faith and credit of the United States government.
- Liquidity & Marketability - The Treasuries market is the most liquid fixed-income market in the world.
- Quality - US Treasuries are an appropriate investment for investors seeking safety and income due to their high credit quality.
- Tax Advantages - US Treasuries are exempt from state and local taxes.
Please contact our dedicated financial professionals to learn more about U.S. Treasury Securities. Back to top.
Mortgage-Backed Securities Mortgage-backed securities are investments backed by a pool of mortgage loans, and they are issued by several institutions including, the Government National Mortgage Association (GNMA or Ginnie Mae), Federal Home Loan Mortgage Corporation (FHLMC or Freddie Mac), and Federal National Mortgage Association (FNMA or Fannie Mae). Who Should Consider Investing in Mortgage Backed Securities?
Investors who seek high income and diversification. Features of Mortgage Backed Securities
- Attractive yields - Usually some of the highest of any government or agency security and often exceeds most investment grade corporate issues.
- Credit quality - Credit risk is considered minimal for mortgages backed by federal agencies or federally sponsored agencies.
- Higher income - Investors may collect higher payments compared with income from investment grade corporate securities.
- Liquidity - The secondary market is sizeable, liquid and actively traded.
Contact us today for more information on how Mortgage Backed Securities may play a role in your portfolio. Back to top. Freddie Mac - The Federal Home Loan Mortgage Corporation Freddie Mac is a stock-holder owned, government-sponsored entity that is authorized to make loan and loan guarantees. Although chartered by Congress in 1970, Freddie Mac is not funded or backed by the United States Government. Freddie Mac sells mortgage-backed securities after it purchases and pools mortgages on the secondary market. Contact your Hennion & Walsh financial professional today to discuss how investing in Freddie Mac may be appropriate for your investments. Back to top. GNMA - Government National Mortgage AssociationGNMA stands for Government National Mortgage Association. This is a government-owned agency that purchases mortgages from a lender, securitizes them, and then sells them to investors. Who Should Consider Investing in GNMAs?
Investors who seek tax benefits or upgrading their portfolio's credit quality. Features of GNMAs
- Government guarantee - Since GNMA is a corporation owned by the United States government, investment in GNMA is an obligation of the U.S. government.
- Higher Yields - GNMAs have historically yielded higher rates than treasuries with comparable maturities.
- Guaranteed Monthly payments - Monthly payments on the principal and interest owed by homeowners are guaranteed by GMNA. This occurs whether or not homeowners are able to meet their obligations.
- Liquidity & Marketability - Because GNMAs are the most widely held and traded mortgage-backed security; they can usually be traded on the market on any business day. The price you receive at the time of sale may be more or less than the principal amount invested.
Before you invest, talk to one of our dedicated investment consultants to find out more about how GNMAs can work for you. Contact us today. Back to top. Fannie Mae Pass-Through Securities
Description
Fannie Mae deals in Federal Housing Association, Veteran's Association and conventional mortgages. Fannie Mae Pass-through securities pay interest and principal on a monthly basis. These payments are guaranteed by Fannie Mae. Objective
Monthly income over intermediate and long periods of time. Who Should Consider Investing in Fannie Mae Pass-through Securities? Investors seeking safety and income. Features of Fannie Mae Pass-through Securities- Monthly Income - Payment is made monthly on both principal and interest. The amount of principal and interest paid each month will vary.
- Credit Quality - Fannie Mae is a government-sponsored enterprise and issues pass-through securities to investors. These securities are not backed by the full faith and credit of The United States Government.
- Liquidity & Marketability - Liquidity is enhanced in these securities because there is a large number of broker/dealers who actively trade them in the secondary market. Investors can usually sell Fannie Maes on any business day at their current market value. Of course, this could be more, less or equal to the initial investment.
- Taxability - Fannie Maes are fully taxable.
Contact your Hennion & Walsh financial professional today to discuss how Fannie Mae pass-through securities may be appropriate for your investment strategies. Zero Coupon Treasury Bonds Zero coupon bonds are bonds that do not pay interest during the life of the bonds and are backed by the full faith and credit of the United States government. Investors buy zero coupon bonds at a deep discount from their face value, which is the amount a bond will be worth when it "matures" or comes due. When a zero coupon bond matures, the investor will receive one lump sum equal to the initial investment plus interest that has accrued. Objective
Zero coupon bonds provide investors, who don't need current income the opportunity to let their money grow, backed by the full faith of the United States Government, until a specific future date. Who Should Invest In Zero Coupon Bonds?
Zero coupon bonds can be used by investors who seek to accumulate a specific amount of money by a certain future date. Features of Zero Coupon Bonds- Credit Safety - Zero coupon treasury bonds are backed by the government who guarantees payment of face amount of the bond at maturity.
- Tax Advantage - Zero coupon treasury bonds are state and local tax-free.
- Minor Initial Cash Investment Required - A relatively small investment today could grow to a large investment over time.
- Liquidity & Marketability - Investors can usually sell their zero coupon bonds on any business day at the current market value.
- Market Value Fluctuations - The price of zero coupon treasury bonds fluctuates with changes in interest rates.
- "Phantom" Income - Investors will be required to pay federal income tax on the accredited value each year, even though they have not received any amount of that income if zero coupon bonds are not held in a tax-advantaged account.
Our dedicated bond experts are ready to discuss how Zero Coupon Bonds can play a strategic roll in your investment portfolio. Contact us today.
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