Bonds

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

High-yield bonds provide stronger long-term returns than investment-grade bonds, as well as superior bankruptcy protection and portfolio diversity than equities. Unfortunately, the high-profile demise of “Junk Bond King” Michael Milken tarnished high-yield bonds’ reputation as an asset class. High-yield bonds have a larger risk of default and volatility than investment-grade bonds, as well as more

High-yield bonds, also known as “junk bonds,” are financial securities issued by corporations with less assured future prospects and a higher risk of default. These bonds are fundamentally riskier than those issued by corporations with a better credit rating, but with higher risk comes greater potential for profit. Identifying junk bond possibilities can help a

High-yield bonds provide stronger long-term returns than investment-grade bonds, as well as superior bankruptcy protection and portfolio diversity than equities. Unfortunately, the high-profile demise of “Junk Bond King” Michael Milken tarnished high-yield bonds’ reputation as an asset class. High-yield bonds have a larger risk of default and volatility than investment-grade bonds, as well as more

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

State and local taxes may not apply to bonds issued by the federal government. Federal, state, and local taxes may not apply to bonds issued by state or local governments. Is interest on government bonds in the United States taxable? Is the interest on savings bonds taxable? The interest you make on your savings bonds

State and local taxes may not apply to bonds issued by the federal government. Federal, state, and local taxes may not apply to bonds issued by state or local governments. Is interest on government bonds in the United States taxable? Is the interest on savings bonds taxable? The interest you make on your savings bonds

Treasury bonds can be a useful investment for people seeking security and a fixed rate of interest paid semiannually until the bond’s maturity date. Bonds are an important part of an investing portfolio’s asset allocation since their consistent returns serve to counter the volatility of stock prices. Bonds make up a bigger part of the