Bonds

Market interest rates and bond prices often move in opposite directions, which is a fundamental premise of bond investing. Fixed-rate bond prices fall as market interest rates climb. Interest rate risk is the term for this phenomena. When interest rates rise, what happens to my bond? Bonds and interest rates have an inverse connection. Bond […]

Because bonds are frequently regarded safer than stocks, they compete with equities for investor cash. Bonds, on the other hand, typically provide lesser returns. Are bonds immune to a stock market downturn? Down markets provide an opportunity for investors to investigate an area that newcomers may overlook: bond investing. Government bonds are often regarded as […]

Because bonds are frequently regarded safer than stocks, they compete with equities for investor cash. Bonds, on the other hand, typically provide lesser returns. Are bonds immune to a stock market downturn? Down markets provide an opportunity for investors to investigate an area that newcomers may overlook: bond investing. Government bonds are often regarded as […]

Bond prices decline as interest rates climb. The interest income provided by bonds competes with each other. When interest rates rise, new bonds are issued at a higher rate, providing greater income. When interest rates fall, new bonds have a smaller yield and are less appealing than older bonds. What happened to my bond? Bonds […]

Walter Waldhauser, one of Houston’s most renowned felons, “deserves to spend the rest of his life in prison,” the former investigator stated. “He’s one of the most intelligent persons I’ve ever met. I’ve never seen somebody labor so hard to deceive others.” In exchange for a 30-year prison sentence, Waldhauser admitted to his role in […]

Johnny Bonds, a retired Houston homicide detective, has been working on “Cold Justice” since the beginning. He began his career in law enforcement in 1967, and at the age of 25, he was promoted to the Homicide Division as the youngest Detective. He served in other prestigious divisions such as Fugitive Detail, Internal Affairs, and […]

The consequences of such unloading would be far worse for China. A surplus of US dollars would cause USD rates to fall, and RMB valuations to rise. It would raise the price of Chinese goods, causing them to lose their price edge. China may not be willing to do so because it is not economically […]

Ratings firms investigate each bond issuer’s financial condition (including municipal bond issuers) and assign ratings to the bonds on the market. Each agency follows a similar structure to enable investors compare the credit rating of a bond to that of other bonds. “Investment-grade” bonds have a rating of BBB- (on the Standard & Poor’s and […]

A bond’s price might change in the secondary market. The yield, current interest rates, and the bond’s rating are the most important aspects that influence the price of a bond. The present value of a bond’s cash flows, which are equal to the principal amount plus all remaining coupons, is the yield. What factors influence […]

The risk-free rate, inflation premium, liquidity premium, default risk premium, and majority premium all contribute to the rate of return. In a perfect world without inflation, the risk-free rate is what an investor would earn without taking any risks. The inflation premium is based on the bond’s term and adjusts for expected inflation in the […]