Bonds

A retail bond offering allows a company to raise additional capital by borrowing at a fixed rate from an investor for a specific length of time. Companies typically issue retail bonds to expand their business, pay off debt, or fund a specific project, as with any capital raising. Typical issues aim to generate £10m to […]

Revenue bonds are a type of municipal bond that is issued to fund public projects and then repaid to investors from the project’s earnings. A toll road or utility, for example, could be financed with municipal bonds, with the tolls or fees collected paying off the interest and principal. Unlike GO bonds, revenue bonds are

Bonds and interest rates have an inverse connection. Bond prices normally fall when the cost of borrowing money rises (interest rates rise), and vice versa. How does the bond market react to rising interest rates? However, a number of factors, ranging from new COVID-19 variations to persistent inflation risks to a dramatic monetary policy move

Bond prices move in the opposite direction of interest rates. Bond prices fall as interest rates climb. Bond prices will rise as interest rates fall. Bond prices are inversely proportional to yields, thus when prices climb, yields fall. Increased demand for bonds boosts the price, lowering the projected return—the yield—for investors. The current yield is

“2021 was a big year,” said Tom Kozlik, Hilltop Securities’ head of municipal research and analytics. “In a single year, we saw more fiscal policy focused on public finance than we have ever seen.” However, some investors may now be anticipating the Federal Reserve’s expected interest rate hikes, which could result in price decreases. However,

When an investor receives less money than the original purchase price for a bond at maturity, this is known as a negative bond yield. A negative bond yield is a rare scenario in which debt issuers are compensated for borrowing. Why would somebody invest in a bond with a negative return? If traders believe the

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. How does the bond market react to rising interest rates? However, a number of factors, ranging from new

Since 1995, Ontario Savings Bonds have been issued every year. OSBs are 100% backed by the province of Ontario and are available in denominations ranging from $100 to $500,000 for small, medium, and large investors. OSBs are only available to citizens of Ontario. What is the procedure for redeeming my Ontario Savings Bonds? Except in

There is a pressing demand for investment in transportation capital infrastructure improvements, which much outnumbers available funds. According to estimates, $51.6 billion per year will be required over the next 20 years to maintain the existing state and performance of the roadway system. This requirement compared to expected spending of $38.7 billion each year, resulting

Savings bonds are debt securities issued by the United States government to cover its borrowing needs. When you buy a savings bond in the United States, you’re effectively lending your money to the government at a certain interest rate, and the government is responsible for returning the loan in full – principle plus interest. Because