Everybody hopes to find the grail how to make money asleep. The internet is full of promising websites that lure visitors with "make 1'000 Dollar a day" schemes. This is not what I mean. There is a real and sustaining opportunity to make money and to relax at the same time. Investing in premium investment grade corporate bonds is this kind of opportunity today.
Why are premium corporate bonds sparkling in these days? The stock markets slump for months and there is no end of this decline in sight. There is a flight in government bonds and there are already comments about a suspected bubble in the government bonds. Thus they should be left out. Gold is a nice alternative, but gold prices are very volatile. Bonds have been considered as boring, because there are no exciting stories to tell as with stocks in the field of private equity. Corporate bonds look promising in a time of credit crunch. It is even tough for companies with a high-marked rating and an excellent public reputation to borrow money. They show a high yield and wide credit spread nowadays. Investments in such corporate bonds are attractive because the inflation is low, thus the yield beats the inflation and offers a real surplus. Their yields are not spectacular compared to the profits on investments in private equity or hedge funds, but they promise a regular and safe income and almost no risk to lose the initial investment.
It is always risky to recommend certain investments. If such hot tips to make money fail the adviser gets blamed. It is even more difficult to claim that it is possible to make money asleep. There is no rule without exception. Such exceptions are the tip to invest in corporate bonds of investment grade companies as Nestlé or Toyota. They have emitted new bonds recently.
Why Nestlé and Toyota? Both of the companies will survive the actual crisis, because they are the world market leaders in their industry. They are simply the best and they will expand further. Nestle is a house of premium brands, e.g. Nescafe, Perrier, Gerber, etc. People need always to eat. Toyota is the most successful car producer of the world. They survive because they have anticipated the green trend and they have shifted on time to design low fuel consumption cars, e.g. Toyota Prius. Nestlé and Toyota Bonds are emitted on all important bond market places of the world and in the most important currencies. Thus investors can do bond investments in Nestlé or Toyota the local currency. More about make money issues can be discussed at
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Liliane Waldner
Bio Box:
Liliane Waldner is a business economist. She has attended the board of several public entities companies and pension funds, some of them dealing with the financial markets. Her website is:
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