Buying Quality at Junk Prices

How would you like to buy quality bonds at junk bond prices? With the problems facing Europe at the moment, all financial bond prices are down and investment ratings are being lowered for European Financial institutions. If I were you, I would take advantage of the situation and buy investment grade bonds that are trading at junk bond prices. Two of these bonds are;

Unicredit Luxembourg Fin SA 6.0% Oct 31, 2017

As of Dec. 16, 2011, it yielded 8.532% and matures on Oct. 31, 2017. It gives interest for 5 years 11 months. So you would get $350 interest for the life of the bond. You would get $115 bond appreciation because it sells at $885. For each bond owned you receive $465 for the life of the bond. The bond pays semiannually and has a S&P Rating of BBB+.

UniCredit Luxembourg S.A. provides various financial services in Luxembourg. The company primarily engages in corporate and investment banking, treasury, and private banking services, focusing on the management of wealth for high net worth and ultra-high net worth segments, as well as providing specialized services in the areas of the asset management of life insurance policies. It also serves small and medium sized enterprises, large and multinational corporate clients, equity funds, and real estate clients. The company was formerly known as HVB Banque Luxembourg S.A. and changed its name to UniCredit Luxembourg S.A. in August 2009. The company was founded in 1971 and is based in Luxembourg...

Dresdner Bank A G 7.25% Sep 15, 2015

As of Dec. 16, 2011, it yielded 13.118% and matures on Sept. 15, 2015. It gives interest 3 years 9 months. So you would get $271.88 in interest for the life of the bond. You would get $169.25 bond appreciation because the bond sells at $830.76. For each bond owned you receive $441.13 for the life of the bond. The bond pays semiannually and is rated Baa3 by Moody’s and BBB by S&P.

As of May 11, 2009, Dresdner Bank AG was acquired by Commerzbank AG. Dresdner Bank AG, together with its subsidiaries, operates as a commercial bank primarily in Germany, other parts of Europe, North America, Latin America, and the Asia/Pacific. It offers a range of banking products and financial services, including loans and deposits, securities and custody services, payment transactions, and trading and capital market services, as well as s life, health, and non-life insurance products to private, corporate, and institutional customers. The bank’s Private & Corporate Clients division offers private clients with personalized financial solutions comprising products for asset accumulation, financing, retirement provision, and insurance; individual asset management for high net worth private clients, such as retirement provision, financing concepts, and financial and asset planning; and advice on personal and business finances for business clients.