Trading Tips

Understanding the S&P Rating System

There are three major credit rating agencies that score the investment quality of stocks and bonds, one of the best known being Standard & Poor’s (S&P). This week S&P downgraded United States bonds from AAA (“Triple-A”) to AA+. Both are strong, investment-grade ratings. Both AAA and AA+ would be considered safe long-term investments. If you’ve been watching the news lately you can only begin to guess which of the US’s laundry list of troubles sparked the recent downgrade. If anything, you might wonder, “Why now?” 

Gaining Benefits from Convertible Bonds

The Benefits Of Convertible Bonds

If you want to take advantage of the potentials of a convertible bond, it is time to consider the benefits that you can get. Basically, convertible bonds are bonds that bondholders can legally claim if there is a default. The assets of the corporation usually back up these bonds.