Bonds can be safer than shares
First and foremost, bonds are much safer and secure than shares and bond prices are much more stable and boring. One of the main reason for this is that share prices move much more on speculation and market hype which is further increased by algorithm and computer trading. Bond are boring and boring is good. […]
Yield to Maturity vs Coupon
Yield to maturity and coupon rate are the two main measures you need to take into account when evaluating bonds for investment. The coupon rate shows you what your annual return from the bond will be and that means you are able adequately to plan your income into the future. Every bond will show you […]
Premium and Discount bonds
Are you aware of the difference between premium bonds and discount bonds? Investors purchasing Bonds on the primary market (the initial issue of the bond) usually pay the face value of the bond which is usually but not always $100. After that, on the secondary market, the price of the bond will fluctuate mainly due […]
Major factors impacting bond price movements
The price of bonds are impacted by various factors. Some are due to the economic and market conditions, and some that are related to the bond and issuer. Investors Interest: During economic uncertainty, some investors may reduce their investment in equities and increase their focus on safer income style investments like bonds. This will increase […]
Beginners guide to Bonds
A bond is a form of debt and allows companies to raise money from the general public instead of going to the banks. The companies in return pay an agreed interest rate to the investor of the bond. Why invest in bonds? Generally a bond returns a regular, guaranteed income for the term of the […]