Bonds

Income Bonds are a sort of investment that pays the holder interest on a regular basis. You can invest anywhere between £500 and £1 million in total across all of your Income Bonds accounts. You can also get your money back at any time, with no notice or penalties. Interest is deposited into your bank […]

The payment of interest income on the principal of an index-linked bond is connected to a certain price index, usually the Consumer Price Index (CPI). This feature provides safety to investors by protecting them from changes in the underlying index. The cash flows of the bond are modified so that the bond holder receives a

Bonds issued or guaranteed by U.S. federal government agencies are referred to as “agencies,” as are bonds issued by government-sponsored enterprises (GSEs), which are organizations founded by Congress to promote a public purpose, such as affordable housing. Bonds issued or guaranteed by federal entities such as the Government National Mortgage Association (Ginnie Mae), like Treasuries,

The Series HH bond was a non-marketable, 20-year government savings bond that paid semi-annual interest depending on a coupon rate. The coupon was fixed for the first ten years, after which it was reset by the US Treasury for the remainder of the bond’s existence. What is the distinction between an EE and an HH

Bonds rated Baa (by Moody’s) or BBB (by S&P and Fitch) or above are thought to have a lesser risk of default and obtain higher ratings from credit rating organizations. The yields on these bonds are often lower than those on less creditworthy bonds. What is the definition of a high-grade bond? Bonds rated Baa

Bonds rated Baa (by Moody’s) or BBB (by S&P and Fitch) or above are thought to have a lesser risk of default and obtain higher ratings from credit rating organizations. The yields on these bonds are often lower than those on less creditworthy bonds. What is a high bond, exactly? High-yield bonds, sometimes known as

A high-yield corporate bond is a form of corporate bond with a higher interest rate due to a greater risk of default. Companies having a higher anticipated default risk may be difficult to achieve an investment-grade bond credit rating if they issue bonds. What is the definition of a good corporate bond? Bonds are graded

A high-yield corporate bond is a form of corporate bond with a higher interest rate due to a higher risk of default. As a result, they frequently issue bonds with higher interest rates to attract investors and compensate them for the increased risk. Is it wise to invest in high-yield corporate bonds? High-yield bonds are

Because they have weaker credit ratings than investment-grade bonds, high-yield bonds (also known as trash bonds) pay higher interest rates. Because high-yield bonds are more likely to default than investment-grade bonds, they must offer a higher yield to compensate investors. What is the trash bond yield? Junk bonds have generally yielded 4% to 6% more

The high-yield muni market is substantially smaller than the investment-grade market in terms of liquidity. It has a lot less “liquid” in it. This translates to fewer trade volumes. This isn’t a concern for investors in mutual funds or exchange-traded funds (ETFs); it only applies to investors in individual stocks. However, when bond prices fall,