The 10% CD

In today’s market, finding a good source of income is a challenge.  

Even with the interest rate hikes from the Federal Reserve, the amount of interest you can receive on your savings is next to nothing, especially considering that inflation is still rather high, sitting at about 2.4% at the time of writing.  

Go to your local bank and check out its savings rates. You’ll be unpleasantly surprised to find that you probably earn less than 1%. Dramatically less, in fact. Your average savings account pays 0.58%. And the national average for a one-year certificate of deposit (CD) yields just 1.72%, while a five-year CD yields 1.42%. Of course, you could always search the internet for a high-yield CD but even those usually pay between 4% and 5% on your principal. 

And as of this writing, the 10-year Treasury yield is just 4.19%.  

None of those interest rates can even keep you afloat in an economy like the one we’re facing at present.  

If you’re an income investor, getting a decent (and safe) yield could seem hopeless.  

But you don’t have to abandon all hope if you’re looking for the perfect income investment.  

In fact, the Oxford Club Research Team has uncovered the perfect investment for people who want a great return with the safety of a savings account.  

And its principal is protected by law. 

That means, if the company issuing it goes bankrupt, its bondholders get paid first. 

Not Your Ordinary Bank CD!

You don’t have to settle for the miserable yields offered by most of today’s savings accounts… so long as you’re open-minded. 

Let us explain… 

The investment we’re talking about is similar to CDs that are offered by banks… but it’s much better. 

We’re talking about investing in short-term corporate bonds. 

Now, before you go jumping out of your seat, think about this… 

As with a CD, with a short-term corporate bond, your principal will be held for a specified period of time while you collect regular interest payments. 

But here’s the important difference… 

Corporate bonds can offer much higher potential yields. The companies are also required by law to pay back the full principal in addition to interest payments to bondholders. 

A fixed-income investment that ties up your principal for some time is only as good as the payout you receive from it. 

Most ordinary bank CDs offer so little that you can’t even beat inflation. 

That’s unacceptable. 

Instead, we suggest you consider purchasing a double-digit-yielding corporate bond with a short-term maturity date – a sort of “10% CD” investment. 

For instance, consider the following bond from Hudson Pacific Properties (NYSE: HPP). 

Hudson Pacific is a Real Estate Investment Trust or REIT that operates primarily on the West Coast of the United States and Canada. Its business is simple, it owns real estate, office space for the most part, and rents it out to companies.  

What sets Hudson Pacific apart is the caliber of its clientele. The company has some of the biggest names in technology renting its office space. Google, Amazon, Netflix, Riot Games, Uber, Dell and others are all Hudson Pacific customers.  

And with the company looking to expand to the East Coast, namely New York, Atlanta, and New Orleans, Hudson Pacific is shaping up to be one of the best real estate plays on the market.  

And real estate generally is a very good long-term play. New sources of oil, gold, lithium, etc. are discovered all the time. But there’s only so much land on the planet. They can’t make any more and we’ve discovered all there is.  

With a rising global population and a permanently fixed supply, land values can only go up. It’s an investment that’s as safe as it is profitable. Speaking of… 

Collect More Than 10% per Year on This Bond

We suggest you buy the Hudson Pacific  (CUSIP 44409mad8) bond. 

A bond’s CUSIP is similar to a stock’s ticker symbol. It’s the access code needed to invest in the bond through your brokerage account. 

This bond has a coupon rate of 5.95%. That means it pays out 5.95% of its face value of $1,000 each year. So this bond pays $59.50 a year in two payments of $29.75 once every six months. 

But right now, you can buy it for just under its par value of $1,000 at about $903 per bond. 

As a result, the current yield is 9.95%. And you can expect this bond to return 10.2% each year. If the price declines, that number will go up. This bond matures on February 15, 2028. So you’ll have about three years to collect interest on your investment  

Speaking of interest, bondholders will receive their scheduled payments twice a year. For this bond, those payments will come on February 15  and August 15. 

To put that in perspective, you’ll be hard-pressed to find a single ordinary bank CD on the market that’ll give you more than 3% per year over a similar period. This bond will generate a return of more than three times that. 

And remember, while a corporate bond is not federally insured like a bank savings account is, it nevertheless offers legal protection for your principal. The company issuing the bond is obligated by law to pay you back. 

Rather than handing your money to your bank for next to nothing, collect a double-digit, or even triple-digit, yield on your investment with a short-term bond. 

Action to Take: Buy the Hudson Pacific Properties  (CUSIP 44409mad8) February 15, 2028, 5.95% coupon bonds at market.