- Bonds are a very specific tool that requires flair and work with analytics. Here are the main strategies when working with this tool.
- 1) A good strategy is a combination of IIA + FLB.
- 2) When choosing high-yield bonds, divide parts of your capital so that in the event of a technical default, you will not suffer much. A good idea would be to invest 80% of your capital in FLB and 20% in high-yield bonds with monthly coupon accrual. This will allow you to earn income quickly and exit if necessary.
- 3) A good strategy can be considered as follows: 30% in FLB, 30% in medium-income bonds and 30% in high-risk bonds. It is also possible to calculate the percentage of deposits in each of the three types of bonds in such a way as to completely eliminate the risk of capital loss by obtaining coupons for the other two instruments.
- 4) An excellent strategy is to buy the bonds of the issuer with state participation that have fallen in price.
- 5) A number of foreign authors preach a strategy of buying junk bonds in crises – the price is very low, and coupons are still paid.
- 6) Usually, if bonds fall, then stocks rise and vice versa. Use this strategy to transfer capital and increase profits.
- 7) Stocks are falling – we compensate with coupons from bonds. The strategy is when 50% of the capital is in stocks, 50% of the capital is in bonds.
8) For the most conservative, a good strategy would be 50% of the capital in the bank (there is no risk of the instrument price sagging), 25% in FLB bonds, 25% in Gazprom JSC shares. Stocks can give income in the form of dividends, and bonds give coupon income.