Agency Bonds & ConsiderationsBond Instruments
If you are investing heavily in government bonds, you don’t particularly need agency bonds. They are highly similar, and the only reason to substitute is for slightly higher yields. Agency bonds are not really swappable for government bonds in a portfolio, since they do not automatically get tax exemptions. The primary difference comes in taxation.
If switching agency bonds and government bonds, you should beware of the bonds that are taxed at federal and state levels. Government bonds are exempt from taxation at state levels, so you are losing an extra level of financial gain with agency bonds that are double taxed. You will need to purchase non-callable fixed rate agency bonds taxed only at the state or local level to match the benefits of government bonds. For a slight return boost, purchase bonds from Government Sponsored Entities. For perfect matching, purchase Full Faith and Credit bonds.
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International Economic Analysis:
- Major Currency Economic Summaries
- Performance of Major Imports and Exports
- Mandates of Central Banks versus Expectations
- Performance Indexes of Major Economies
- Economically Correlated Currency Projections
- Large Funds Currency Sentiment Readings
- List of Technical Indicators to Look For
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American Markets Analysis:
- Summaries of American Economic Structure
- Performance of Major
- Federal Reserve Mandate versus Expectations
- Performance Indexes of U.S Economy
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- Market Wide Earnings Versus Valuations
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- Best and Worst Future Consensus Estimates
- Occasional: Firm Fundamental Strength Report
- List of Technicals to Look for While Trading
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