Bonds

National governments create quasi-government organizations with elements of both the public and private sectors. These organizations sell quasi-government or agency bonds. In the United States, Fannie Mae (Federal Mortgage Association), Freddie Mac, and Hydro-Quebec are examples. Due to their extraordinarily low default rates, quasi-government bonds are highly rated. Although national governments do not guarantee these […]

Railroad bonds are the highest-quality bonds in the transportation sector, as well as among the highest-rated bonds in the fixed-income market as a whole. Railroad bonds tend to trade higher in price due to relative scarcity, as there is no big railroad growth now and more cost-effective debt issuance than bonds accessible to the industry.

RRBs (real return bonds) are government of Canada bonds that offer inflation protection. They provide people with a consistent cash flow that keeps up with the expense of life. Regardless of the interest rate or inflationary climate, the cash flow’s purchasing power remains constant over time. The bond pays a coupon rate, often known as

A non-investment grade bond, also known as a speculative bond, a high yield bond, an unsecured debenture, or a junk bond, is a bond that is regarded as a low-quality investment due to the possibility of default by the issuer. To compensate for the additional risk, non-investment grade bonds have higher yields than investment grade

Long-term products let investors to lock in their investments at a specific rate, ensuring predictable cash flows. Short-term products have reinvestment risk, making cash flow planning difficult because interest rates may vary at maturity. Can NRIs purchase bonds? NRIs can now invest in Government of India bonds (G-sec) through the Reserve Bank of India. These

Keep an eye on the ratings of the bonds you’re considering buying. The most popular bonds are those with the highest credit ratings from the main credit rating agencies, including Standard & Poor’s, Moody’s, and Fitch Group. You may look up a bond’s rating by typing it into the bureau’s website. Bonds with a higher

Through a combination of bonds and derivatives priced today, a cash window, and future commitments from donor countries for additional coverage, the PEF will provide more than $500 million to insure developing countries against the risk of pandemic outbreaks over the next five years. There are two windows in the PEF. The first is a

As the name implies, perpetual bonds have no expiration date. Only the issuer has the option of calling the bonds back, and the buyer of the bonds cannot sell the bonds to the issuer before the issuer exercises the call option. What is a perpetual bond, for instance? With the help of an example, we’ll

A callable bond is funded using a pre-refunding bond, which is a debt security issued to fund the callable bond. A pre-refunding bond is one in which the issuer decides to exercise its right to buy back its bonds before the maturity date. What is a bond refunding in advance? Advance refunding occurs when the

A premium bond is one that trades at a higher price than its face value, or in other words, one that costs more than the bond’s face value. Because its interest rate is higher than current market rates, a bond may trade at a premium. What is the purpose of a premium bond? What are