TessMore Finance Blog

What are convertible bonds? Convertible bonds are a type of corporate bond that can be traded on the open market and are typically issued by firms with high credit ratings. The investor in convertible securities receives cash interest payments, as well as shares of stock if they choose to convert their investment into common equity at maturity or before the call date. Convertible bonds offer an investor several benefits over traditional bonds. These bonds usually pay a coupon (a fixed rate of interest) and offer the investor a choice of two payout options: cash payment or stock ownership. An investor who chooses to convert the bond into common equity will receive the call price if it is above the original investment, if not, then the original investment is forfeited. There are several reasons why an investor would choose this option including; To hedge their stock exposure against a market crash in case they face a margin call or need money to pay for taxes on capital gains. C...

In an effort to combat inflation, the Federal Reserve has raised interest rates by a quarter point to a range of between .25% and .5%. This interest rate hike, the first since 2018, is one of seven planned interest rate increases in 2022. So what does that actually mean for your finances? Let’s take a look at how this turn of events could impact your financial situation and investment strategy. How an Interest Rate Hike Will Impact Your Finances When the Federal Reserve raises interest rates, banks and lenders respond in turn. Here’s where you may notice higher rates: Credit Cards  Credit card interest rates are often changing based on what’s happening in the market. And if the Fed increases interest rates, then credit card providers will likely raise their rates in turn. However, this will only impact consumers who carry a credit card balance. If you have a credit card and pay off your statement balance every month, then nothing will really change for you. But if you have cr...

Some of the links in this post are from our sponsors. We provide you with accurate, reliable information. Learn more about how we make money and select our advertising partners . So, you’re looking for a new bank account. You’ve got several factors to consider — ATM access, interest rates, monthly account fees, minimum balances, online bill payments and more. Another factor: sign-up promotions and bonuses. Banks and credit unions frequently run promotions to entice prospective customers to open a new account — and they often come with cash. You have to meet specific criteria, such as making a minimum opening deposit, and generally the account must remain open for a certain amount of time — at least long enough to earn the cash bonus. Many banks offer such sign-up bonuses, but often, they aren’t advertised. We did some digging to find the best bank promotions currently on offer. Best Checking and Savings Account Offers of April 2022 Keep an eye on what each promotion requires, as ...