Bonds

Buying Treasury Bonds

Treasury bonds — also known as Treasurys or T-Bonds is the umbrella term for different types of bonds issued by the U.S. Treasury. Treasurys come in three main types based on the time frame of the loan: T-Bills — the shortest-term variety maturing in one year or less T-Notes — mid-range loans with maturities of […]

Bonds

Buying Municipal Bonds

The Strategy Municipal bonds, also known as munis, are issued by states, cities, counties and other government entities below the federal level in order to raise money for public improvements like highways, bridges, schools, hospitals, sewer systems, water treatment plants and other such projects. From a simplistic view, municipal bonds as a whole are investments […]

Bonds

An Introduction to Bond Investments

Types of bonds There are many different types of bonds available; here’s a brief overview of the more commonly traded ones in the U.S. market. These include debt securities issued by the U.S. Treasury, municipal bonds, corporate bonds and other government bonds.   U.S. Treasury debt securities The U.S. Treasury issues debt securities (bonds) in […]

Bonds

Bond Trading Introduction

As debt securities, bonds can provide excellent diversity to your investment portfolio. They represent money borrowed by a corporation (or government or municipality) to fund expansion, construction, and other growth-related projects. You are the bond investor, who holds an IOU from the borrower indicating you are entitled to recover your money with a specific rate […]

Bonds

Buying Corporate Bonds

As the name implies, corporate bonds are issued by a corporation. Unlike municipal bonds, they are taxable. If you buy them in a retirement account, they may offer a relatively high rate of return on a tax-deferred basis. Bonds are debt securities rated by independent agencies and, as you’d imagine, higher-rated bonds tend to yield […]

Bonds

Investing in Bonds: A Beginner’s Guide (Part 1)

Depending on your financial goals, time horizon, and risk tolerance, investing in bonds (debt securities) can play a key role in diversifying your portfolio. What is a bond? When corporations, municipalities, governments, and other entities need funding for their major projects, they raise money by issuing bonds to the general public. Think of a bond […]

Bonds

Investing in Bonds: A Beginner’s Guide Part 2 – Important Terms

Bond trading involves special terminology and strategy. Here’s a quick overview of the most common terms used by investors.   Face value The face (par) value of your bond is the amount the issuer pays you, when your bond reaches maturity. Face value is not necessarily what you paid for the bond, which is known […]

Bonds

Investing in Bonds: A Beginner’s Guide (Part 3)

Bonds provide a fairly predictable stream of income. They are called fixed-income securities because the amount of money you receive and the dates on which you receive your payments are specified in advance. Fixed-income securities typically have a lower risk factor than stocks. Of course, any investment involves risk. Risks and Rewards of Bond Investing […]

Bonds

Investing in Bonds: A Beginner’s Guide (Part 4)

When you include bonds in your portfolio, you are adding diversity and offsetting potential risks to your investment. Consider these strategies as you prepare to begin bond trading. Reduce overall investment risk Stocks may go up over time, sometimes with spectacular results. But they can also stagnate, lose value, and, in rare cases, lose their […]

Bonds

Should You Invest in Corporate Bonds?

For advanced traders, corporate bonds comprise a key component of a diversified investment portfolio. But are they a good match for your financial objectives? Investing in corporate bonds might make sense for you, if: Bonds are a part of your asset allocation plan and you're investing a certain percentage of your portfolio in them. You […]