Ramon Said:

How to buy bonds trough online brokers?

We Answered:

I can only relate my experience with Fidelity and TD Ameritrade. They both offer bonds. They have inventories that you can browse on line to find ones that might interest you. All bonds carry ratings from AAA to D. Investment grade bonds are rated BBB or better. The brokers also have fixed income specialists who can assit you.

I do have a suggestion for you to consider. There are mutual funds that specialize in bonds, both open end and closed end. They have both advantages and disadvantages.

Advantages: you get a broad holding of bonds so a down grade in one rating will not cause you to loose 30% of your investment. A default will not cause you to loose even more.

disadvantages: you pay a fairly hefty expense ratio unless you purchase an index bond fund.

Bond are not paying decent yields at the moment. The best yields are given by t-bills, which you can also buy through your on line broker. Fidelity does not even charge for the purchase if you buy through the Monday morning auction. 6 mo t-bills currently yield about 5%. Investment grade corporate bonds not a great deal more, not even the 30 yr bonds. Ford Motor bonds yield a great deal more. They and GM bonds are considered junk.

JHS bond fund currently yields about 6.1% A+ rated bonds.
JHI bond fund currently yields about 6.4% A+ rated bonds.

Leonard Said:

Is now a good time to buy municipal bonds and why?

We Answered:

you should only buy munis if 1) your investor profile dictates that bonds should be a part of your portfolio, and 2) if your tax bracket is so high that your return from the munis will be higher than your after-tax return on other types of bonds, like t bills. muni hlders are exempt from paying federal income tax on interest income paid by muni bond issuers. that is their main benefit.

when it comes to individual investors, they are marketed towards high net worth individuals.

Alfredo Said:

How can I buy high yield foreign bonds?

We Answered:

The best (imo) way is to buy many bonds via a closed end mutual fund which you can buy with Scotttrade, Zecco, or any broker.
3 examples: AllianceBernstein Global High Yield Fund (NYSE: AWF), DWS Multi-Market fund (NYSE: KMM), and PIMCO Strategic Global Govt fund (NYSE: RCS).
{The above 3 are NOT recommendations, just 3 I have heard about. Do you own research.}

Bryan Said:

Are there any bonds available that I can buy but especially I should not be able to cash out until 3 to 5 year

We Answered:

Generally, savings bonds take 10 years to mature, that is, reach their face value. But after three to five years you could still cash them in and get some interest. For Instance, if you buy a $100 savings bond, you would pay $50 for it. Then after 10 years it will be worth $100, but after 5 years, it will be worth $75. I'm sure you know the way they work. Now it seems as though you don't even want to be able to cash them in... like you don't trust yourself or something. If this is the case, I would go with Certificates of Deposit. These generally yield much interest, far more than bonds or savings accounts. Plus you cannot cash them in until they are fully mature, which generally takes 4 years, but can vary. You can get these at almost any bank. With COD's, you are saving your money, but you are also making a wise investment. I recommend shopping around awhile before jumping right in, as some banks have drastically higher interest yield rates.

Clyde Said:

How can I buy bonds?

We Answered:

I series bonds pay a good rate of interest tied to the rate of inflation which adjusts every quarter. They don't take 9 years to mature like EE bonds - and are worth face value plus interest when redeemed - but you'll lose some interest if you cash them before 5 years (I think).
You can buy bonds at any bank.

Hugh Said:

What are the best scenarios to buy bonds?

We Answered:

Some bonds are very similar to equity in that you will buy them in a bull (rising) market. High yield bonds (junk) would fall in that category. These bonds are typically issued by upstart companies looking to raise money for growth. Because they are riskier, their yields are higher than other bonds.

Investment grade Bonds are generally safer than stocks, and even in a bull market, should be a small part of any portfolio. In a down market, you will want a larger portion of your portfolio in these types of bonds.

Bonds are also better for short term investments in that you will get a maximum yield without the risk of an equity investment