LYCOS RETRIEVER 
Bonds: Stocks
built 225 days ago
GSC Investment Corp. is a specialty finance company that invests primarily in first and second lien loans and mezzanine and high yield debt of private, U.S. middle-market companies and high yield bonds. It has elected to be treated as a business development company under the Investment Company Act of 1940. The Company ... opportunistically invests in distressed debt; debt and equity securities of public companies; credit default swaps; emerging market debt; and collateralized debt obligation vehicles holding debt, equity or synthetic securities. The Company draws upon the support and investment advice of its external manager, GSC Group, an alternative asset investment manager that focuses on complex, credit-driven strategies. GSC Investment Corp. is traded on the New York Stock Exchange under the symbol "GNV."
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There is an active secondary market for bonds, although not all bonds have the same liquidity. Some trading takes place on exchanges. For example, a number of bonds are listed on the New York Stock Exchange. Most bonds trade over the counter (OTC). Brokers or dealers trade bonds via phones or computer networks. Usually, if an investment bank handled the public offering of a bond, it will make a market in that bond.
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It's an investing axiom that stocks return more than bonds. In the past, this has generally been true for time periods of at least 10 years or more. However, this doesn't mean you shouldn't invest in bonds. Bonds are appropriate any time you cannot tolerate the short-term volatility of the stock market. Take two situations where this may be true:
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A security issued by a corporation or public body and usually carrying a fixed rate of interest and a set date, called the bond’s maturity, for redemption of the principal. Like a stock, a bond is a type of investment, but unlike a stock, a bond has a definite, but not necessarily fixed, yield. Some bonds have a feature known as a call, which gives the borrower an option to pay off the principal of the bond before its maturity, the date when the bond is due to be redeemed.
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All this is consistent with the saying that as stocks die, bonds fly. But don't swallow this whole. The maxim "is all wrong -- it's backwards, as a matter of fact," says Stan Richelson, a suburban Philadelphia investment adviser and co-author of an understandable book on all aspects of investing in bonds (Bonds: The Unbeaten Path to Secure Investment Growth, second edition 2007, Bloomberg, $24.95).
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