TheStreet.com RealMoney

Good Bonds Are Being Sold at Silly Prices

By Jim Cramer

 About this article:
 The competition between bonds and stocks is getting a little crazy. Many of the stocks that seem cheap are backed up by bonds that are ridiculously cheap if you believe the common is whole. Tons of them. Preferreds the same. If you really think GM is going to get bailed out or made "whole," go buy the 30-cents-on-the-dollar paper. Maybe it will turn out to be worthless. I saw an upgrade of Darden today -- why not buy Darden bonds, the 7.125s of 2016? I see 'em at $80. A better deal. Or how about the mortgage-backed market? You can find some terrific buys in these with the basic guarantee of the government for 15% to 20%. I don't know if the stock market can possibly beat that return for that level of risk. Munis, too. Rich people should be looking intently at government-obligated bonds that...

You have just read the beginning of a premium article from our RealMoney Service. To read the rest of this article and sign up for a FREE trial please click below.

ACCESS STORY & START A FREE 14-Day Trial
Or, call us at 1-866-321-TSCM (8726) Monday-Friday, 8 a.m.-6 p.m. ET.
Outside the U.S. and in Canada, call 1-212-321-5200.



Already a RealMoney subscriber? LOG IN.
Username: Page data is submitted securely.
Password:
Forgot your Password? Click here


100% Money-Back Guarantee
If you decide to subscribe and you're not completely satisfied with TheStreet.com RealMoney, just call us within the first 30 days of your subscription and we'll refund your full annual subscription price — guaranteed.




If you choose a 14-day free trial of RealMoney and you do NOT call to cancel within those 14 days, you will pay $129.95 — a $100 savings off the regular annual subscription price of $229.95. Unless you cancel before the end of that year, your subscription will automatically renew for another year at the then-current subscription price.

Offer applies only to new annual subscriptions, and is subject to change at any time. Void where prohibited.

If you choose a monthly subscription, you pay $34.95 per month. You will be notified if the current monthly rate of $34.95 changes at any time in the future.

TheStreet.com is a publisher. None of the contributors or their affiliates will provide you with personally tailored advice concerning the nature, potential, value or suitability of any particular security, portfolio of securities, transaction, investment strategy or other matter. From time to time, any or all of the contributors or their affiliates may hold positions in securities mentioned and they may trade for their own accounts. In cases where the position is held at the time of publication, appropriate disclosure is made.

© TheStreet.com, Inc., 14 Wall Street, 15th Floor, New York, NY 10005.