Investment

An indenture is a legally enforceable contract between a bond issuer and a bondholder that spells out the bond’s terms. It usually consists of the following: Key Terms Yield/Yield to Maturity (YTM) – A bond’s yearly rate of return if held to maturity (assuming all payments are not delayed). Maturity – When a bond reaches […]

What distinguishes the OTC bond market from others? The OTC does not have a physical address. It is the cost for an investor to purchase a certain security from a dealer. It is the price at which a dealer will sell a specific securities. What is an over-the-counter bond? Without being listed on an exchange, […]

Treasury bonds are often regarded as one of the safest investments in the world, if not the safest. They are deemed risk-free for all intents and purposes. (Note that they are risk-free in terms of credit, but not in terms of interest rate risk.) Bond prices and yields are usually compared to those of US […]

Bonds issued by corporations. At the federal level, bonds used to fund municipal and state government projects such as buildings and roadways are tax-exempt. Furthermore, consumers who buy bonds issued by their states or municipalities may not have to pay state or local taxes on the interest they earn. Which government bonds are exempt from […]

Sovereign gold bonds, or SBGs, are gold bonds issued on behalf of the Indian government by the Reserve Bank of India (RBI). The gold in this bond is sold on a unit-by-unit basis, with each unit’s value deriving from underlying one gram of 999 quality gold. The price is established by averaging the closing gold […]

Investing in these speculative grade bonds, which have a larger chance of default than investment grade bonds, could result in a higher yield. Bonds rated BB+ or below by Standard & Poor’s (S&P) or Fitch, and Ba1 or lower by Moody’s, are referred to as Speculative Grade bonds (also known as High Yield bonds). These […]

A federal judge in Manhattan preliminarily authorized a $95.5 million settlement negotiated by investors with Deutsche Bank, Bank of America, and HSBC in a claim alleging the banks rigged the market for bonds issued by foreign governments on July 16, 2020. A claim filing date of April 16, 2021 has been set for impacted investors […]

A social impact bond (SIB) is a contract between the government and the private sector that pays for better social outcomes in certain regions while passing on a portion of the savings to investors. Because repayment and return on investment are reliant on the accomplishment of targeted social goals, a social impact bond is not […]

Solar bonds are municipal revenue bonds that are issued to provide low-interest funding for the rapid development of local renewable energy technologies like solar power at a cheaper cost. How can I go about purchasing solar bonds? Simply form an account, make a deposit, and buy Solar Bonds from SolarCity online with no investment costs. […]

Savings bonds are regarded as one of the most secure investments available. The underlying principle is that the value of a savings bond grows over time, but it’s easy to lose track of how much it’s worth over time. The TreasuryDirect savings bond calculator, fortunately, makes determining the value of a purchased savings bond a […]