MarketWatch  4 hrs ago  Comment 
Treasury yields retreated on Friday, leaving the 10-year on track to break a six-week streak of climbing yields.
MarketWatch  4 hrs ago  Comment 
Just look at how the S&P 500 has fared and the relative performances of stocks vs. bonds and stocks vs. commodities, says longtime technical analyst Michael Kahn.
SeekingAlpha  5 hrs ago  Comment 
Clusterstock  5 hrs ago  Comment 
As we head into the final days of 2016, i t's a good time to reflect on interesting market trends of the year. 2016 has been the most exciting year in recent times—with the a huge anti-establishment wave in politics across the world, and...
Mondo Visione  9 hrs ago  Comment 
KNF has approved an annex to the GPW bond prospectus which defines the margin The margin on the series D and E bonds is 0.95 percent. On 21 December 2016, the Polish Financial Supervision Authority (KNF) has approved Annex 2 to the...
Clusterstock  9 hrs ago  Comment 
If you followed Warren Buffet's investing mantra – be greedy when others are fearful and fearful when others are greedy – then 2016 should have been a bumper year. Debt traders that loaded up on newly downgraded bonds early on in 2016 made a...
The Hindu Business Line  10 hrs ago  Comment 
The IRF contract is based on 6.84 per cent central government security maturing on December 19, 2022
The Economic Times  Dec 23  Comment 
The yield-to-maturity (YTM) available on the most attractive tax-free bonds is around 6.18%.These coupon rates are for institutional investors.


A bond is a type of debt. It's a loan from an investor to an institution, and in exchange the investor collects a predetermined interest rate. When a company needs capital to expand its business, it issues bonds to the public. Investors buy them with the understanding that they will collect the original principal plus interest when the bond matures at a set date. Federal, state, and municipal governments issue bonds for a similar purpose, to raise money for projects and public programs.

Types of Bonds

Bonds or Stocks?

Making the choice between stocks and bonds can be complex. In general, though, the key consideration is your own planning horizon.

Bonds are, in general, more predictable than stocks, and (on average and in general) give you lower returns. If you believe you'll need predictable access to money over, say, a 20-year period, you may be better off with bonds. For example, if you want to put aside a specific amount of money for a grandchild, expecting that money to be available for college in eighteen years, and not expecting to have other capital available. Insurance companies invest heavily in bonds for just this reason: it matches predictable liabilities (future insurance claims) against predictable cash flows (principal and interest).

Some bonds have tax advantages; for example, municipal bonds are typically exempt from state taxes in the state that issued them, as well as federal taxes. This can make them more attractive, though often you will find that the market has arbitraged away the difference, and that corporate (that is, taxable) bonds carry a higher gross yield -- and the same net yield after taxes. Although many investors invest in munis for just this reason -- they "don't like the taxman" -- they may not be making the optimum investment choice.

Bonds are not riskless, however. They carry credit risk ("will I get my money back?"), prepayment risk, liquidity risk and interest-rate risk. Many bonds give the bond issuer the right to repay the bond early -- which happens more often when rates are low, in other words, just when you don't want your money back. This is prepayment risk. Liquidity risk is the risk that you won't find a good price for your bond when you want to sell it -- because there are so many more bond issuers than stock issuers, and because bonds are not exchange-traded, there may not be a willing buyer. Interest-rate risk is the opposite of prepayment risk: when rates go up, the value of your bond will drop (it drops more, the further away it is from maturity). If your circumstances change and you need to sell the bond before maturity, you can lose capital that you would otherwise receive, if you held the bond to maturity.

Read More

A how to on investing in bonds

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