Latest Articles and Resources
- Auction Rate Securities (ARS): A High Risk Style of Bond for Wealthy…Updated: Mon Jun 30 15:13:16 2008
Auction rate securites (ARS) are bonds in which the interest rate is reset on a recurring basis -- sometimes as often as every seven days. Both corporate bonds and municipal debt issues are availab… - Collateralized Debt Obligations (CDOs) and How They Started the Cre…Updated: Thu Jun 26 17:36:27 2008
Somewhere in early 2007, one of the more complex and controversial corners of the bond world began to unravel. By March of that year, losses in the collateralized debt obligations (CDOs) market wer… - Underwriting Bonds: Investment Banks, Underwriters, Underwriting Spr…Created: Wed Jun 25 15:23:10 2008
Selling bonds is a complex endeavor. There are millions and millions of dollars at stake even in the smallest of offerings. Investment banks are key to the process. Those banks bid for the right to… - "Dirt" Bonds: Real Estate Development Bonds in the Municipal Bond Ma…Created: Fri Jun 20 14:34:05 2008
"Dirt" bonds are the nickname given to tax-free municipal bonds used to finance real-estate development projects. … - How to Buy a Corporate Bond: Brokers, Over-the-Counter and Exchange-…Updated: Fri Jun 20 14:34:04 2008
Buying individual corporate bonds is a complex endeavor. It takes more sophistication and more research than buying a share of stock. Here are some of the key things to consider… - Buying a Muni Bond Fund; How to Choose the Right Municipal Bond Fund…Updated: Fri Jun 20 14:34:03 2008
If taxes are a concern, but you don't have at least $100,000 to invest, you should consider buying a municipal bond fund. These mutual funds offer the same tax-free advantages of municipal bonds wh… - Bowie Bonds: Where Can I Buy a Bowie Bond?Created: Fri Jun 20 14:34:02 2008
Back in 1997, an investment banker named David Pullman created a series of bonds backed by the royalties on music owned by rock star David Bowie. The deal captured the imagination of Wall Street, w… - What Is a Callable Bond? Understanding Call Dates and Reinvestment R…Updated: Fri Jun 20 14:34:01 2008
Some bonds have an unusual feature that allows the issuer to "call" back the bond and pay off the principal early. That poses some additional risk to investors in the debt market. But the… - Credit Ratings Agencies: Ranking Bonds for Safety; Default Risk and …Updated: Fri Jun 20 14:34:00 2008
A bond is a loan. So the first question to ask before you buy a bond is the same question you'd ask before you loaned money to your brother-in-law: "Will I get my money back?" In bonds, t… - Top 10 Things to Know About BondsUpdated: Fri Jun 20 14:33:58 2008
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&#… - Risks of Bonds: Inflation Risk, Liquidity Risk, Reinvestment RiskUpdated: Fri Jun 20 14:33:57 2008
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, including inflation risk, reinves… - Before You Buy a Bond FundUpdated: Fri Jun 20 14:33:56 2008
Bonds are among the safest investments available. And as a general rule, mutual funds are the safest way to invest in bonds. But that doesn't mean you should jump right in. Here are a few items to … - Quant Jobs: Careers as a Quantitative AnalystCreated: Fri Jun 20 14:33:55 2008
The newest job in the bond world is drawing recruits from the world of mathematics and physics. These numbers- and computer-focused folks are called quants, and they practice the art and science of… - Face Value: What's a Bond Worth When It MaturesCreated: Fri Jun 20 14:33:54 2008
In bonds, face value refers to what is owed to a bondholder when the security matures. By tradition, most bonds in the U.S. have a face value of $1,000. … - Careers as a Bond Trader: Pit Traders Fade as Math Experts Rise in I…Updated: Fri Jun 20 14:33:54 2008
Careers in bond trading can be enormously rewarding from a financial perspective. Competition for these jobs at the giant investment banks and other financial institutions is fierce. And the market… - TIPS: Using Treasury Inflation-Protected Securities Hedge Against In…Updated: Fri Jun 20 14:33:53 2008
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 Trea… - Junk Bonds: Weighing Risks in High-Yield SecuritiesUpdated: Fri Jun 20 14:33:52 2008
Junk bonds, also called high-yield and below-investment-grade securities, are among the riskiest investments in the credit market. But because of that risk, bond issuers must pay higher yields to a… - Default Risk: When a Bondholder is Left Holding the BagCreated: Fri Jun 20 14:33:51 2008
Default risk describes the danger that a bond issuer will become insolvent and unable to honor its debt obligations. In the bond world, default risk is highest for below-investment-grade securities… - Zero-Coupon Bonds: What Are Zero Coupon Bonds and "Strips" and Who S…Updated: Fri Jun 20 14:33:51 2008
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 in… - Opportunity Cost: The Price of the Road Not TakenCreated: Fri Jun 20 14:33:50 2008
Opportunity cost is a form of investment risk that measures what is lost when an investor must make a choice among alternatives. For example, by keeping money in a savings account rather than buyin… - What Is a Money Market Fund? Definition and Uses of This Short-Term …Updated: Fri Jun 20 14:33:49 2008
Money market funds are a popular and safe place for investors to keep cash for the short term. These investment vehicles offer both security and liquidity. But the relatively poor returns offered b… - Yield Curve: How Bond Yield Curves Work; Inverted Yield Curves; How …Updated: Fri Jun 20 14:33:48 2008
A yield curve is a 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 significanc… - Credit Default Swaps: Used to Protect Investors from Defaults on Bon…Created: Fri Jun 20 14:33:47 2008
Credit default swaps are a form of derivative. The swaps are complex investment vehicles that can be used to protect a bond buyer from the risk of default. … - What are I Bonds; U.S. Government Savings Bonds Adjusted for Inflati…Created: Fri Jun 20 14:33:47 2008
I Bonds are a form of U.S. Savings Bond sold by the U.S. Treasury Department. The primary difference between I Bonds and the older EE Savings Bond is that I Bonds are adjusted for inflation… - What is a EE Savings Bond: Understanding the Newest Issue of U.S. Sa…Created: Fri Jun 20 14:33:46 2008
An EE Savings Bond, available in both paper and electronic versions, is an investment vehicle sold by the U.S. Treasury Department. It's a popular choice among small investors and newcomers to the … - What Is the Safest Investment? Treasuries Offer Safety, But Smaller …Updated: Fri Jun 20 14:33:46 2008
If you're primary goal in investing is to not lose money, consider buying U.S. government debt. Treasuries are backed by the "the full faith and credit" of the federal government. But don… - Are Muni Bonds for You? Calculate Tax-Equivalent Yield Before You Bu…Updated: Fri Jun 20 14:33:45 2008
For many investors, the idea of earning tax-free returns makes the purchase of a muni bond seem like a no-brainer. But munis aren't for everyone. Unless you're in the right tax bracket, owning a mu… - What Is a Bond? Understanding Yields, Maturities, Credit Ratings and…Updated: Fri Jun 20 14:33:43 2008
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… - BondsUpdated: Fri Jun 20 14:33:42 2008
Bonds may be the least understood and the most confusing investment tools in the world. But there's no reason for them to be. Here's where you'll find the information, advice and news that can shed…