Should You Buy the Highest-Yielding Bond?

June 15, 2020
If you are considering two bonds, should you buy the one with the higher yield?

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After you listen

  • To learn more about investing in bonds or other fixed income strategies, check out schwab.com/FixedIncome
  • You can read more expert insight from Collin Martin on Insights & Ideas.

 

  • To learn more about investing in bonds or other fixed income strategies, check out schwab.com/FixedIncome
  • You can read more expert insight from Collin Martin on Insights & Ideas.

 

We all like low prices and big returns, but when faced with the decision of which bond to buy, should you pick the one with the higher yield? Should you, in essence, shop for a bond bargain? It could be that the yield number catches your attention because it is so salient. This decision is especially pertinent right now, given the low level of interest rates.

In this episode, Mark Riepe talks with Collin Martin, managing director and fixed income strategist at the Schwab Center for Financial Research, about what to consider—besides yield—when you are evaluating bonds.

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