Bonds 101: Introduction to Investing in Debt Securities
Your resource for getting started in bonds - learn how bonds work, what the different yield and return figures mean, and whether bonds are right for you.
12 Types of Bonds to Know
Learn about 12 types of bonds that appear most frequently in investors' fixed-income portfolios, from low-risk options such as savings bonds and U.S. Treasuries to higher-risk investments such as high yield bonds and emerging market debt. Find out the basics of each of the 12 types of bonds, and get links to more in-depth information.
Why Invest in Bonds?
Bonds don't receive the same attention that is lavished on stocks, but there are several benefits to investing in bonds, including steady income, diversification, principal protection, and potential tax benefits. Find out how bonds may help you achieve your financial goals.
The Difference Between Stocks and Bonds
Investors are always told to diversify their portfolios between stocks and bonds, but what’s the difference between the two types of investments? Here, we look at the difference between stocks and bonds on the most fundamental level.
What is the Difference Between Yield to Call and Yield to Worst?
Learn the difference between a bond's yield to call and yield to worst, and how these relate to the bond's yield to maturity.
Bond Basics: Issue Size, Issue Date, Maturity Value, Coupon, Yield to Maturity
Learn basic bond definitions: what are issue size, issue date, maturity value, coupon, and yield to maturity. Also, what is the difference between coupon and yield to maturity?
The Difference between Yield and Total Return
There's more to a bond fund's return than simply its yield. Investors must also consider the fund’s total return, which is the combination of yield and the return provided by principal fluctuation. Learn the difference between yield and total return, and which measure is more useful in assesing bond funds.
What’s the Difference Between Coupon and Yield to Maturity?
One of the most important things for bond investors to understand is the difference between coupon and yield. Coupon tells you what the bond paid when it was issued, but the yield – or “yield to maturity” – tells you how much you will be paid in the future. Learn more about the difference between a bond's coupon and its yield to maturity.
What Is “Real Return” and “Real Yield”?
Learn the meanings of real return, nominal return, and real yield, and how understanding these concepts can help you understand the impact of inflation and make better investment decisions.
Why Do Bond Prices and Yields Move in Opposite Directions?
Get the plain-English explanation of why bond prices and yields move in opposite directions. Why do bond prices rise when yields fall, and vice versa? The answer is actually rather simple.
The Relationship Between Risk and Yield in the Bond Market
A bond's yield is often an indicator of its risk - the higher the yield, the higher the risk; the lower the yield, the lower the risk. Find out why this is, and why investors should never pick a bond or bond fund solely on the basis of its yield.
Premium Bonds and Discount Bonds: Definition and Explanation
Learn the basic definitions of premium bonds and discount bonds, why discount bond aren't necessarily a value, and why premium bonds shouldn't be thought of as “expensive”.
What is a “Yield Spread”?
The term “yield spread” is one that you may see used quite frequently – and with good reason. The yield spread is one of the key metrics that bond investors can use to gauge how expensive or cheap a particular bond – or group of bonds – might be. Learn more about yield spreads and how they can help you make better investment decisions.
Bond Upgrade and Downgrade Definition
Learn the basic definition of bond upgrades and downgrades, and what changes to a bond’s credit rating may mean for your portfolio.
What Are Bond Credit Ratings?
Bond credit ratings provide a guide the strength of the issuer’s finances and its future prospects – and allow investors to gain a sense of how likely a bond is to default. Learn more about bond credit ratings, and what each credit tier – from AAA to D – can tell you about an individual bond.
Credit Risk vs. Interest Rate Risk
Bonds are often classified as “low risk” or “high risk,” but this is only half of the story. There are actually two kinds of risk: interest rate risk and credit risk. These are two distinct types of risk that can have a very different impact on various asset classes within the bond market. Find out interest rate risk and credit risk will affect...
The Impact of Inflation on Bonds
Inflation can hurt bonds in two ways, by 1) causing the Federal Reserve to raise interest rates and 2) by lowering your real return (or in other words, your return after inflation). Find out more about how inflation can impact bond returns.
The Top 10 Mistakes by Bond Investors
Make the most from your fixed income investments by avoiding these ten common mistakes made by bond investors.
Bonds and the Economy
Economic trends are one the key drivers of bond market performance, but the economy affects different types of bonds in different ways. Learn more about the links between bonds and the economy.
How to Buy Individual Bonds
MarketAxess is an electronic trading platform for many types of bonds. Find out more about this growing business and how it may change the way you invest.
Bond Funds in Your 401(k)
Should the bond market's fluctuations affect your 401(k) investment strategy? CBS MarketWatch takes a look.