This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Bonds Reclaim Limelight After Stock Rout

Stocks in this article: MCO

The global bond market dwarfs the global stock market. The market for bonds is estimated at $67 trillion dollars, with nearly half of those bonds originating in the United States. That compares to a global stock market valuation of just above $40 trillion, even after the market crash.

Most of these bonds trade daily, just not as visibly as the prices set in the stock market. The opaque nature of the bond market leads to huge price differences and plenty of profit opportunities for unscrupulous brokers. Those wide spreads are giving financial companies an opportunity to narrow the spread and introduce retail consumers to a new, more transparent bond market.

That's what's behind Fidelity Investments' recent push to teach investors about bonds with seminars and online tools. The company is trying to make it easier and cheaper to create portfolios of individual bonds, and choose appropriate bond funds. More than 100 fixed income specialists are available by phone to help customers.

"They need to know that there is an alternative between stocks and cash or money market funds," says Richard Carter, vice president of fixed income securities at Fidelity's brokerage unit. "Bonds, whether individual securities or an appropriate bond fund, can fill that gap."

Fidelity's Web tools enable wealthy investors to make a "bond ladder" of similar bonds maturing in successive years. A "scatter" graph allows you to set your risk parameters -- including coupon rate, maturity date and credit rating - and locate individual bond issues you can buy for your brokerage account. The new site offers everything investors need to become their own bond portfolio manager.

2 of 4

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,614.81 +215.14 1.31%
S&P 500 1,941.28 +37.27 1.96%
NASDAQ 4,419.4780 +103.4040 2.40%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs