Bonds

Rising interest rates may have a short-term negative impact on the value of a bond portfolio. Rising interest rates, on the other hand, can boost the overall return of a bond portfolio in the long run. This is due to the fact that money from ageing bonds can be re-invested in higher-yielding new bonds. Are […]

A mutual fund or exchange-traded fund (ETF) that tracks or matches the components of a financial market index, such as the Standard & Poor’s 500 Index, is known as an index fund (S&P 500). A broad market exposure, low operating expenses, and low portfolio turnover are all claimed benefits of an index mutual fund. Regardless

High-yield bonds are neither good nor bad investments on their own. A high yield bond is one that has a credit rating that is below investment grade, such as below S&P’s BBB. The higher yield compensates for the higher risk associated with a lower credit grade on the bonds. Higher-quality bonds’ performance is less associated

We are in the midst of a series of interconnected and mutually reinforcing crises. Some, like COVID-19 and the ensuing recession and huge unemployment, happen out of nowhere, like a cliff fall. Others, such as droughts, floods, fires, sea level rise, severe storms, and mass extinctions brought on by climate change, are happening slowly, like

High-yield bonds are neither good nor bad investments on their own. A high yield bond is one that has a credit rating that is below investment grade, such as below S&P’s BBB. The higher yield compensates for the higher risk associated with a lower credit grade on the bonds. Higher-quality bonds’ performance is less associated

Because the interest generated on your inherited bonds is considered income, it must be reported and taxed. Interest that is deemed “income in respect of a decedent” and interest that is considered your income are separated by the Internal Revenue Service. Income in respect of a decedent is income earned on bonds up until the

Treasury bonds are considered risk-free securities, which means that the investor’s principal is not at danger. In other words, investors who retain the bond until it matures are guaranteed their initial investment or principal. Are government bonds completely risk-free? Investing in long-term US government bonds carries a virtually low chance of losing principal. However, there

Investing in long-term US government bonds carries a virtually low chance of losing principal. The United States has a good credit rating and repayment history, and it has the ability to “print” money as needed to meet its debt obligations. However, there are other dangers, such as interest rate risk, inflationary impacts, and opportunity costs.

Treasury securities (“Treasuries”) are issued by the federal government and are considered to be among the safest investments available since they are guaranteed by the US government’s “full faith and credit.” This means that no matter what happens—recession, inflation, or war—the US government will protect its bondholders. Treasuries are a liquid asset as well. Every

Treasury securities (“Treasuries”) are issued by the federal government and are considered to be among the safest investments available since they are guaranteed by the US government’s “full faith and credit.” This means that no matter what happens—recession, inflation, or war—the US government will protect its bondholders. Treasuries are a liquid asset as well. Every