Pricing, Estate Planning
Additional Features of New Issue Retail Corporate Bonds
- Pricing - New issue retail corporate bonds typically are offered at par (usually $1,000 per bond). This means no discount or premium pricing, and no accrued interest. When held to maturity, purchases of new issue retail corporate bonds will not incur capital gains or losses.
- Household Names - Investors are likely to recognize the names of companies sponsoring the new issue retail corporate bond programs, and be familiar with their products and services.
- Variety - New issue retail corporate bonds are typically offered in a variety of maturities and interest payment options, including monthly pay. This allows individuals to accurately match income and portfolio needs.
- Estate Planning - With most of these retail note programs, in the event of death, the holder's estate may, if applicable, at the option of the estate, return (or put) the notes back to the issuer at par. Some limitations and restrictions apply. Investors are urged to read the appropriate prospectus for full disclosure of this feature.
- Ideal for Ladder Structure - The nature of these new issue corporate bond program may be suitable for investors seeking to create a laddered portfolio of investments.
Please consult your financial advisor prior to investing any money in these or other products. These products are offered through many but not all broker-dealers. This information does not constitute an offer to sell or a solicitation of an offer to buy the securities, nor shall there be any sale of those securities, in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful. Certain products are offered by prospectus or offering circular only. Product suitability must be determined for each individual investor.