Strategies for Bonds

Broadly speaking, bonds are considered safer than stocks and when dealing with investment grade rated bonds.

Sharper Insight. Smarter Investing. Manage Preferences MORE ON BONDS Many of the units so far in this email course have focused on stocks. Now, let's talk about bonds, which are another very popular type of investment. A bond is a debt investment in which an investor loans money to an entity (typically corporate or governmental) which borrows the funds for a defined period of time at a variable or fixed interest rate. Bonds are used by companies, municipalities, states and sovereign governments to raise money and finance a variety of projects and activities. Owners of bonds are debt holders, or creditors, of the issuer. Bonds are generally considered among the safer investments. When dealing with investment grade rated bonds, the risk of a loss of principal is generally small (although not negligible). Bonds issued by the United States government, U.S. government agencies, highly rated municipalities and highly rated corporations have historically offered principal safety and attractive levels of current income. Bonds provide consistent income due to their periodic coupon payments. On the downside, the rate of return on bonds is often lower than that of other investments. A bond is sometimes called a fixed-income security, due to the fact that it provides periodic income at a fixed rate, read on. The Advantages Of Bonds Bonds contribute an element of stability to almost any portfolio and offer a safe and conservative investment. Read More Bond Valuation Basics The fundamental principle of valuation is that the value is equal to the present value of its expected cash flows. Read More Tactical Tips For Bond Investors Profit from long-term market trends by buying bonds when other investors shy away. Read More How To Create A Modern Fixed-Income Portfolio Exposure to different asset classes is required to generate income, reduce risk and beat inflation. Find out how bonds can help. Read More U.S. Corporate Bonds: The Last Safe Place to Make Money There aren't many other sources right now for relatively safe, steady income. Read More Fundamental Analysis Get ahead of the market by understanding the true value of a stock and capitalize on its price. Learn fundamental analysis strategies and tools used by the most successful investing professionals. Enroll Now. You are currently subscribed as: techandgio.cpex@blogger.com Unsubscribe  |  Manage Subscriptions Investopedia, LLC, A Division of IAC. 114 West 41st St, floor 8, New York NY 10036 Copyright © 2018, Investopedia, LLC. All Rights Reserved Follow Us: