by Springwater Wealth | Jan 8, 2019 | Newsletter
All of our clients, even the most aggressive investors, own bonds in their portfolios. Why? Because bonds serve a variety of purposes in the construction of a balanced portfolio. They provide income to the investor. The issuer of a bond borrows money from the bond...
by Springwater Wealth | May 22, 2018 | Newsletter
A few weeks ago, we discussed interest rates, the 10-Year Treasury Notes and short-term bonds. We briefly mentioned floating rate bonds, a subject to which we return today. To review, in a rising interest rate environment, bonds will lose value. Why? Investors want...
by Springwater Wealth | May 8, 2018 | Newsletter
If you follow interest rates, you may have noticed that the 10-year Treasury note recently closed above 3.00% first time since December 31, 2013. So, what does this mean to you? Let’s start by noting that bond yields rise when bond prices drop. So, when the yield on...
by Springwater Wealth | Apr 17, 2018 | Newsletter
Yesterday one of our clients asked us for the cost basis for a corporate bond that had been in her portfolio. It matured last year (2017) and the principal was returned to our client. Her CPA was working on her taxes and needed to know what our client originally paid...
by Springwater Wealth | Feb 20, 2018 | Newsletter
With the Federal Reserve planning to continue gradually increasing short-term interest rates, investors should be familiar with the concept of “duration” for fixed income investments. Most investors will understand that a bond’s...
