Special Opportunity for Vision Clients
When the Federal Reserve lowered its target interest rate to an incredibly low 0-25 basis points (0.25%), it caused income oriented investors to look at many alternatives while seeking a reasonable rate of return on their investments. Since its inception in 1988 “Fed Funds” are now at their lowest level resulting in cash and cash equivalents including money markets, certificates of deposit (CDs) and Treasury Bills providing historically low yields. In fact, for a brief period Treasury Bills went to zero meaning that an investor received no interest by purchasing a T-Bill from the U.S. Government.
Investment Grade Corporate Bonds With Very Attractive Current Yields
Rather than put money under the mattress and wait for the situation to improve, Vision has an alternative for you to consider. We have an inventory of corporate bonds of investment grade, publicly traded companies with very attractive current yields. Of course investing in bonds involves risk and can not be compared to Government backed investments such as Treasury securities or FDIC insured bank accounts, but we feel that investing in investment grade corporate bonds offers an attractive total return for investors.
As such, Vision offers bonds for our clients to invest based upon the following criteria:
- The issuer must be investment grade ranging from BBB to AAA;
- The the maturity dates range from approximately six months to four years in duration;
- Vision continually monitors the issuing company to ensure our faith in its ability to properly service its debt.
Companies You Know and Like!
Vision has investment grade corporate bonds from many different issuers including such well known and respected names as the following (just to name a few):
- Coca Cola Enterprises;
- AT&T;
- Nationwide; and
- United Healthgroup.
Contact Vision Today
Speak with a Vision representative today to see if any of these bonds have a place in your portfolio. We believe that today's attractive yields found in select corporate bonds offer investors seeking a quality yield an excellent alternative for their investment portfolio. Vision offers these bonds on a net yield basis with a mark-up already included in the price so the yield quoted is the yield you will receive upon purchase. Furthermore, Vision is willing to break the bonds into small pieces to suit the needs of our clients.
What is your current full service broker or discount firm doing for you these days? Contact Vision today and start taking advantage of a firm that is fully committed to putting our client's interests first.
Please keep in mind that yields and prices may vary so that an investor may receive more or less than invested if the bonds are not held until maturity. Furthermore, these investments are not insured by the FDIC or any other entity. Bonds are subject to risks including interest rate risk, issuer risk and reinvestment risk.
Corporate bonds may be subject to the following risks which investors should carefully consider prior to making any investment:
- Credit Risk - The financial risk that the issuer will not be able to repay the principal upon maturity as promised;
- Call Risk - Bonds may be redeemed before the stated maturity date (depending on the call provisions of the specific bond issue);
- Market Risk - If the bond must be sold before the maturity date, the bond may be worth more or less than the face value and more or less than an investor paid for the bond depending on interest rate movements;
- Inflation Risk - The value of the bonds or the income derived from the bonds may be eroded if inflation shrinks the value of the underlying currency;
- Liquidity Risk - Some bonds may be very hard to sell if there is a thin trading market or if the bonds are relatively unknown; and
- Reinvestment Risk – If interest rates fall, there is risk that the interest and/or principal upon maturity of a specific bond may need to be reinvested at lower rates than the original investment.
Vision Financial Markets LLC is a member of the Securities Investor Protection Corporation (SIPC). SIPC provides up to $500,000 of coverage, with a limit of $250,000 for claims for cash. This protection does not safeguard against a decline or loss in market value of the securities in your account. For more information, please read Vision's Asset Protection brochure.
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Mutual Funds
Vision has a mutual fund platform consisting of over 80 different fund families comprising thousands of individual funds.