How to Buy AIG Insurance Corporate Bonds

Diversify your portfolio with American International Group (AIG) corporate bonds. In 2008, the Forbes 2000 list named AIG the 18th largest company worldwide. AIG has a diverse group of worldwide subsidiaries which helps maintain the stability of the company. While any investment can be a risk, AIG has proven itself a solid choice. In contrast to stocks that can fluctuate wildly in value, bonds tend to provide a predictable income.

Instructions

1. Investigate corporate information about American International Group, its subsidiaries, philosophy and framework. This will help you decide if investing in AIG is right for you.

2. Establish what risks are involved with corporate bonds. Generally speaking, the higher the risk, the larger the potential payout, but the opposite is also true.

3. Research companies before you make the bond purchase. Determine if an investment company or an Internet trading company is best for you.

4. Ask questions about the transaction. Find out what fees are involved and how they will be paid.

5. Settle on either short term or long term bonds. Establish which will have better returns and fit better into your investment plans.

6. Define the specific parameters of the bond. A bond can be callable, which means the company can call or pay out the bond if interest rates decrease too much.

7. Consider the market liquidity of the bond. Thin markets may cause a bond to become difficult to sell.

Tips & Warnings

• Use resources such as Standard and Poor's to find out AIG's financial stability rating.