Church Bonds

[brewer12345]

It is quite possible that as long as this stays a small, sleepy market where people keep playing by the same rules, it will be a safe source of return. However, the things that make it safe are behavioral rather than contractual and they can change, possibly without warning. The big mistake I made in not catching the crazy turn into the sewer of the mortgage markt is that I underestimated how foolish people would become with their homes and how draconian they would be once things were not stacked in their favor. Church bonds might be and remain a good place to park money, but the lack of contractual protections make me uncomfortable.

 

[14thMed]

I read the church in Flint info,I see someone was driving a 50k car. That would make me nervous.

 

[Original Wally]

Nords - INTERESTING topic. Before I retired 12/2009, I worked in the Treasury Dept for our local Municipal Electric District in Sacramento, CA. And "prospectus" work ... or "Official Statements" as they were called for us ... was one of our regular products. Is was INTERESTING to take a quick gander at the one for Brazos Fellowship. VERY similar in design and structure. I felt REAL comfortable glancing thru the doc. Not sure I would INVEST... but then again... it IS a faith thing.

Thanx for the notion.

Alan W. (retired CPA - which REALLY stands for Constant Pain in the ... well you KNOW the rest!)

 

[JDARNELL]

Another bond called today. It had a maturity of 2031 as this one was compounding. oh well 8.1% for 5 yrs

JDARNELL

 

[JDARNELL]

Another early call on a 2024 bond.

JDARNELL

 

[brewer12345]

Another early call on a 2024 bond.

JDARNELL

Not surprising at all. I would expect to see everything that can be called get called. The chase for yield is in high gear and issuers are taking advantage of it by refinancing.

 

[JDARNELL]

Not surprising at all. I would expect to see everything that can be called get called. The chase for yield is in high gear and issuers are taking advantage of it by refinancing.

Agreed!