Greetings! Today #postyvbudni long-awaited post about bonds. I will write about, how to find bonds, which to choose, how to analyze and buy. At the end of the post there will be an announcement of my new bond rate..
Bond marketBond market
The last post about the rise in inflation made many people think about, how to protect money from depreciation, multiply them in the long term and at the same time do not get into overvalued stocks.
Many asked to write about bonds. I totally agree, that bonds in the current conditions are the best option for investing free money. Therefore, at these requests, I decided to write about this tool..
Bonds play an important role in a portfolio. In my portfolios they are 45% assets. First of all, it is a liquid reserve of money in case of a decline in the stock market. Secondly, it is a tool with clear and stable profitability, unlike stocks. Many remember, that I increase my investment in stocks, when the market falls, therefore, during such periods, the bond reserve acts as a source of purchase of shares.
Simply put, when the market rises, I increase the reserve from bonds and buy stocks at a minimum. When the market falls, I increase my stock purchases and reduce my bond reserve.
When investing in bonds, primarily, you need to proceed from the key rate of the Central Bank. When it is low, buy short bonds and vice versa.. If the rate is low and rising, then long bonds with a fixed coupon will fall in value. Therefore, you will not be able to sell them profitably., and the maturity is long. AND, on the contrary, when the stakes are high and falling, then the cost of long bonds will rise, which only increases your profitability.
Now in Russia the rate is growing and, according to analysts, it will continue to grow. Therefore, I personally buy short corporate bonds with maturities up to 1 of the year.
For, to find bonds and choose suitable ones, you need a convenient service. I use many services, one of which is Smartlab. If you enter in the search engine "Smartlab bonds", then the first link will take you to the Smartlab bonds section. All bonds on the market can be found there.: OFZ, corporate, municipal.
At the top you can filter bonds by maturity. I set up 1 years and sort them in descending order of profitability.
Then I go in order through the list from top to bottom., analyzing all bonds, until I find an acceptable option. The analysis is carried out according to the following parameters:
1. Bond liquidity
3. Elimination of the risk of early repayment
4. Analysis of company reporting
5. Credit rating analysis of a bond
6. Analysis of tax audits, debts on enforcement proceedings
1 - Liquidity (trading volume) should be sufficient, so that you can buy a bond in the required amount. This can be viewed in the same table on Smartlab or in the order book on the exchange.
2 - It is advisable to choose permanent coupons, to know for sure, what profitability will you get. We also look at the Smartlab in the bond card.
3 - The bond program may provide for early redemption of bonds at par at the discretion of the issuer. If you bought a bond above par and an early redemption occurs, you will lose in profitability. On the Rusbonds website you can see, whether there is an early repayment.
4 - Analysis of the company's reporting is the most important component when choosing bonds, allowing to reduce the risk of default. Briefly, then you need, that the company's equity capital is positive and desirable, so that his share in assets was 30% and more. It is forbidden, so that the company has losses, desirable, so that revenue and profits grow. The profit from the sales of the company should cover the interest payable on debts and preferably in 1,5 and more times.
5 - Don't buy junk grade bonds with ratings below B, ie. SSS and below. The credit rating can be viewed on the websites Dook.ru and Rusbonds.
6 - It is advisable to view the tax audits of the company and debts on enforcement proceedings on the Rusprofile website. If there are many, the company is in the process of tax audit, then this should alert.
Going through all these points, if everything is in order and the yield of the bond suits me, i buy bonds. It seems, that there is too much to watch, but if you fill your hand, then the analysis of the bond takes less 5 min.
The most important thing to know, what to look at, where to get information and just learn this algorithm. I did that in due time and now I buy bonds on it..
Based on my knowledge, I prepared a course on bonds "Guide to buying bonds", which includes:
1. Guide to buying bonds on 49 p., including 6 lessons with step-by-step instructions with pictures:
⠀1 lesson. Theory
⠀2 lesson. Services for bonds
⠀3 lesson. How to select and analyze bonds
⠀4 lesson. How to calculate and keep track of bond yields
⠀5 lesson. Buying bonds in the QUIK program
⠀6 lesson. Long-term bond investment and strategy
2. Excel spreadsheet for calculating bond yields with instructions
3. Checklist memo for bond analysis
4. QUIK configuration files for comfortable buying bonds
5. Chat support. If something seemed incomprehensible, You can always ask me a question.
How to choose bonds?How to choose bonds?Bond selectionBond selection
The course is worth just like 2 bonds - 2000 rub. and stays with you forever. You can read more detailed information about him on the website using the link in the profile header.. There is also a convenient online payment with automatic delivery of the course to your mail.. Payment by number is also available.
The course will help, if a:
1. You don't understand well, what are bonds and why are they needed
2. Afraid to buy bonds for fear of default
3. Don't know what to look at when choosing and buying bonds
4. You want to get adequate profitability with minimal risks
Learn to choose the right one, analyze and buy bonds. Build Your Bond Portfolio.