I usually do not invest in banks but in 2009, I could not miss the opportunity to make a 10% per year return for 6 years. This bond will mature on Sept. 15, 2015. Lately this bond sold for a premium (over $1,000) at $1,066.07. That is $66.07 over par (at $1,000).
The bond gives a “Yield to Maturity” at this price of $1,066.07 is 3.330% for 2.25 years. The bond Moody Rating is BA2 and the Standard and Poor’s Rating is BB+. The CUSIP No. is 989701AJ6.
Zions Bancorporation is one of the nation's premier financial services companies, consisting of a collection of great banks in select high growth markets. Under local management teams and community identities, Zions operates over 480 full-service banking offices in Arizona, California, Colorado, Idaho, Nevada, New Mexico, Oregon, Texas, Utah and Washington.
In addition, Zions is a national leader in SBA lending, public finance advisory services, and agricultural finance. The company is included in the S&P 500 Index.
In addition, Zions is a national leader in SBA lending, public finance advisory services, and agricultural finance. The company is included in the S&P 500 Index.
What is Zions Bancorporation?
Zions Bancorporation is one of the nation's premier financial services companies, consisting of a collection of great banks in select high growth markets. Under local management teams and community identities, Zions operates over 480 full-service banking offices in Arizona, California, Colorado, Idaho, Nevada, New Mexico, Oregon, Texas, Utah and Washington.
In addition, Zions is a national leader in SBA lending, public finance advisory services, and agricultural finance. The company is included in the S&P 500 Index.
How am I doing in the Market?
The Dow Jones Averages have taken off this year with a “Year to Date” advancement of 16.66%. If you are lucky enough to have invested in the components of the Dow on January 2, 2013, you are sitting on a good profit.
My portfolio is not doing so well this year so far. My return is only 6.943% in the past 5 months. But I am still beating the Dow since January 2009, with a return of 61% per year for the past 4 years and 5 months. A large part of my bond account that was purchased in 2009 is going to mature this year. This is the reason for my lower return. I will be reinvesting my profits into more bonds before the year is out.
The other reason why we are going to see lower returns in my portfolio than the Dow over the coming years will be because interest rates are starting to go up. That means that bond prices will go lower and bond yields will be in competition with other rising interest rates. In this new environment, it will be best to keep your maturity dates near term to compensate.
The other reason why we are going to see lower returns in my portfolio than the Dow over the coming years will be because interest rates are starting to go up. That means that bond prices will go lower and bond yields will be in competition with other rising interest rates. In this new environment, it will be best to keep your maturity dates near term to compensate.
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