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Company bonds Updated: 01 May 2009

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Risky as shares? Posted by: MikeS 24 Apr 2010 7:22pm

Many bonds are as risky as shares. Consider buying shares in the company you might get capital appreciation as well as dividends. The amount of research is often the same and if you diversify well the overall risk is gets less. New Zealand market not attractive? Consider Australia you can buy shares there without too much difficulty these days.

Reply 1: Posted by: Wayne Kirkland 01 Jul 2011 4:47pm

Bonds are generally a much safer bet than shares. That's because your place in the pecking order should the institution default/fail is almost always higher than that of the shareholders - who are always at the bottom of the pile. A bond from a solid company is always going to be a safer bet than a share from the same company - unless it's so deeply subordinated that it ranks alongside shareholdings.