I am a California resident who owns California State Bonds. When a state becomes bankrupt, what happens to its bonds? They quit paying both interest and principle, according to Paul Solman. A default is exactly that. Lehman Brothers declared bankruptcy on September 15, defaulting on a large number of corporate obligations. Three days later, Richard […]

Build America Bonds are taxable municipal bonds with federal tax credits and subsidies for the bond issuer or the bondholder. Build America Bonds were established under Section 1531 of Title I, Division B of the American Recovery and Reinvestment Act, which was signed into law on February 17, 2009 by US President Barack Obama. The

We expect 2021 to be a year of recovery for fixed income investors. Many economic estimates show the United States’ GDP growing by as much as 5% or perhaps 6%, raising the question of whether bond market yields will rise in this climate. Rising rates, on the other hand, imply lower bond prices—at least on

If you know interest rates are going up, buying bonds after they go up is a good idea. You buy a 2.8 percent-yielding bond to prevent the -5.2 percent loss. In 2022, the Federal Reserve is expected to raise interest rates three to four times, totaling up to 1%. The Fed, on the other hand,

Every financial consultant you’ll ever speak with, as well as every investing article about portfolio diversification, will urge you to invest some of your money in stocks and some in bonds. But why is that? The rationale for this is because stocks and bonds don’t always move in the same direction—when stocks rise, bonds fall,

The Federal Reserve is likely to boost overnight rates toward 1% in 2022 and then above 2% by the end of next year, with the goal of containing inflation. By the end of 2022, strategists polled by Bloomberg News expect higher Treasury yields, with the 10-year yield climbing to 2.04 percent and 30-year bonds rising

If you know interest rates are going up, buying bonds after they go up is a good idea. You buy a 2.8 percent-yielding bond to prevent the -5.2 percent loss. In 2022, the Federal Reserve is expected to raise interest rates three to four times, totaling up to 1%. The Fed, on the other hand,

Long-term US government bonds are currently mispriced in relation to growing inflation. Even if COVID-19 pandemic supply chain issues are resolved swiftly in 2022, this disconnect will not be resolved overnight. Far higher interest rates to match stubbornly high inflation may be the only option to avoid a currency crisis in the United States in

To redeem a bond, you must be the owner or co-owner of the bond and have an active Bank of America checking or savings account. (If your checking or savings account has been open for less than 6 months, you will be limited to a daily redemption limit of $1,000.) Savings bonds can be cashed

They give a steady stream of money. Bonds typically pay interest twice a year. Bondholders receive their entire investment back if the bonds are held to maturity, therefore bonds are a good way to save money while investing. Companies, governments, and municipalities issue bonds to raise funds for a variety of purposes, including: Investing in