Bonds 101: Introduction to Investing in Debt Securities
Bonds are among the least understood investment vehicles in the world. But there's no need for investors to remain in the dark. Here's where you'll learn the basics of the bond market, how debt securities are priced, whether bonds make sense for your portfolio, just how safe -- or risky -- bonds may be, and just what exactly, is a yield curve.
What Is a Bond? Past the Complicated Lingo Is a Familiar Concept
Bonds are a mystery to many investors. But there's no need for confusion. Once you get past the jargon of yield curves, maturities and Aaa ratings, you'll find a simple and familiar concept. A bond, after all, is nothing more than a loan.
Bonds are a mystery to many investors. But there's no need for confusion. Once you get past the jargon of yield curves, maturities and Aaa ratings, you'll find a simple and familiar concept. A bond, after all, is nothing more than a loan.
Top 10 Things to Know About Bonds
If you’re new to the world of bonds, it’s easy to be intimidated. Bond investing can be filled with unusual lingo, strange concepts and a lot more talk about math and economics than you’ll find at the local discount stock broker’s office. But don’t be discouraged. Bonds aren’t as mysterious as they may appear.
If you’re new to the world of bonds, it’s easy to be intimidated. Bond investing can be filled with unusual lingo, strange concepts and a lot more talk about math and economics than you’ll find at the local discount stock broker’s office. But don’t be discouraged. Bonds aren’t as mysterious as they may appear.
The Risks of Bond Investing: Understanding Inflation, Reinvestment Dangers
Bonds are among the safest investments in the world. But no investment is entirely risk free. In fact, fixed-income investing has its own particular forms of risk: inflation, reinvestment, default, downgrade
Bonds are among the safest investments in the world. But no investment is entirely risk free. In fact, fixed-income investing has its own particular forms of risk: inflation, reinvestment, default, downgrade
Understanding Yield Curves: The Spread is the Key for Investors
A yield curve is simple representation of the relationship between the interest rate that a bond pays and when that bond matures. Learning how to read a yield curve -- and knowing the significance of a flattening or inverted yield curve as well as how to calculate the spread -- is a crucial skill for fixed-income investors.
A yield curve is simple representation of the relationship between the interest rate that a bond pays and when that bond matures. Learning how to read a yield curve -- and knowing the significance of a flattening or inverted yield curve as well as how to calculate the spread -- is a crucial skill for fixed-income investors.
What Are TIPS or Treasury Inflation-Protected Securities?
Inflation can eat away at your investments. But there's a very safe investment from the U.S. Treasury Department that protects investors from inflation risk. The principal invested in TIPS, or Treasury Inflation-Protected Securities, is adjusted semiannually to reflect rises in the Consumer Price Index.
Inflation can eat away at your investments. But there's a very safe investment from the U.S. Treasury Department that protects investors from inflation risk. The principal invested in TIPS, or Treasury Inflation-Protected Securities, is adjusted semiannually to reflect rises in the Consumer Price Index.
What Are Zero-Coupon Bonds and "Strips" ?
Zero-Coupon Bonds are sold at a deep discount to their face value. In many cases, interest is compounded and paid at maturity rather than during the life of the bond. In other cases, a financial institution "strips" the interest payment from a fixed-income investment and resells it as a zero coupon.
Zero-Coupon Bonds are sold at a deep discount to their face value. In many cases, interest is compounded and paid at maturity rather than during the life of the bond. In other cases, a financial institution "strips" the interest payment from a fixed-income investment and resells it as a zero coupon.