Best Short Term Corporate Bonds

Short Term Corporate Bonds

Investors spend a lot of time looking for the best short term corporate bonds, but what makes a bond the best? This will depend on the individual investor and the specific goals desired. Long term corporate bonds tie up capital for extended periods and this is one reason why investors may choose shorter term options instead. One bond that a number of investors consider the best for short term coverage is the security offered by Transocean, symbol RIG, with a maturity date of 12-15-2016. This bond offers a 5.05% coupon rate and a $1 billion offering size. The rating given to the bond by S&P is BBB and Moody’s offers Baa, making it an investment grade choice. Interest is paid out twice a year and there is a call in place if needed to make whole the company.

Johnson Controls, symbol JCI, has one of the short term corporate bonds that is considered the best for many investors. The date of maturity for the bond is 12-01-2016, $400 million was the size of the offer. And there is a call in place to make whole the company. This is one of the corporate bonds given a Baa rating by Moody. It also offers a rate of 2.60% while also offering semi-annual interest payments. Another option for investors in this area is Raytheon, symbol RTN. The bond matures on 12-15-2014 and offers a 1.40% rate. There is a make whole call in place on the bond and it pays interest two times a year.

One of the best short term corporate bonds and a name known to most Americans is John Deere Capital, symbol DE. This is a senior unsecured note which is not callable and matures on 1-17-2017. The coupon rate for the bond is 2% and the S&P rating is A. Moody’s gives the bond an AA rating and interest payments are made semi-annually. This bond makes a good addition to almost any corporate bonds list. Safeway, symbol SWY, also offers bonds that are rated highly by some investors. The bond which matures 12-01-2016 offers a rate of 3.40% and has a make whole call in place. Baa is the rating from Moody’s for the bond and interest is semi annual.

There are many short term corporate bonds to choose from, and many investors pick The Walt Disney Company, symbol DIS, as one of the best. It will mature on 12-01-2014, and while the rate is low at 0.875% the company is one that is well known and recognized. Conditional call features are in place and the bond is rated A or AA. Investing in corporate bonds can be a good way to meet your investment goals, as long as you do all the necessary research and bond comparisons. Scripps Networks Interactive, symbol SNI, is another top pick for investors. The coupon rate of the bond is 2.70% and it matures on 12-15-2016. S&P gives the bond an A- rating and Moody’s rates it at Baa. The investment grade and company financials makes this bond a winner for many.