We selected Goldman Sachs as the best Corporate Income Bond we could identify for May 2010.
We have developed a process for our clients to review, select, purchase and monitor Corporate Bonds. Enclosed is our review along with support as to why we believe it makes sense with our corporate bond clients’ portfolios. We review over 1,600 separate Corporate Bond for sale listings to find what, we believe, currently has the best yield, maturity and credit quality for investors. The following includes our selection criteria.
Step 1. Yield curve
Step 2. Description
Step 3. Yield premium
Yield Curve at 4-7 Years Out
We went out on the yield curve just enough to receive higher returns in yield but not far enough that if inflation starts to increase, a small but also real probability due to our country’s largest deficit spending, it could lead to a loss of principle. To protect our client in this worst case scenario, we would just plan to hold to maturity.
The Goldman Sachs Group, Inc. is a global leader in investment banking and securities who engages in investment banking, buying and selling securities, asset management and many other financial services focusing on institutional clientele. Goldman Sachs‘ headquarters is located at 200 West Street, New York, and was founded in 1869. Former employees include Robert Rubin and Henry Paulson who both served as the United States Secretary of the Treasury after resigning from Goldman Sachs, thus the nickname “Government Sachs”.
The corresponding 7-year treasury currently has a 3.01% yield. This provides a comparable 5.678%, or a pick-up of 2.668%, which is an 88% higher yield.
Issue GOLDMAN SACHS GROUP INC SUB NT
Yield % 5.621
Price $ 1000
|Day Count Basis||30/360|
|Payment Delay||0 DAY DELAY|
|First Coupon Date||07/15/2007|
|Last Coupon Date||07/15/2016|
|First Settlement Date||01/10/2007|
|Bonds In Default||NO|
A good 2.668% higher yield for a 7-year bond, even with good ratings and with the attributes listed above, I believe, is well situated for income investors. We provide a wide list of Corporate Bonds currently for sale to help compare values.
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Disclosure: Durig Capital has no ownership in GOLDMAN SACHS GROUP INC.
You can find more information about Goldman Sachs at: http://www2.goldmansachs.com/
To know more about this Goldman Sachs bond call our fixed income specialist at 971-327-8847