Exchange-Traded Debt (ETDs) Offer High Yields

Exchange traded debt (ETDs) are notes and bonds issued by large corporations. ETDs trade on major stock exchanges. Yields normally range from five to eight percent. Most ETDs are rated at BBB- or higher.

ETDs are issued in $25 increments with narrow bid and ask spreads and they have low volatility like many bonds.

Most ETDs pay quarterly distributions that are treated as interest, not dividends, for tax purposes.

ETDs are callable so total return can be reduced if you paid above the issuing price.

See a comprehensive list of ETDs.