Investment

While safe, income-producing bonds should be a part of any well-diversified portfolio, muni bonds have some disadvantages. Before making muni bonds a part of their investment strategy, those interested in buying them should think about a few things. Who buys municipal bonds and why? Municipal bonds (munis) are issued by state, county, and local governments […]

Bonds can be used by individuals and institutions for long-term planning, saving, optimizing income, minimizing interest-rate risk, and diversifying portfolios. Bonds give a steady stream of coupon income and, if held to maturity, their full par value. Could these “stodgy” investments give your drab portfolio a boost? Who buys and sells bonds? Participants in the

Banks and insurance companies frequently issue surety bonds. They’re normally obtained through brokers and dealers, who, like insurance agents, get compensated for their sales. What is the purpose of surety bonds? A surety bond, at its most basic level, obligates the surety to pay a specified sum of money to the obligee if the principal

Bearer bonds are nearly extinct in the United States and most other nations due to their lack of registration, which made them ideal for money laundering, tax evasion, and a variety of other illegal activities. What countries are the bearer bond issuers? Purchasing bearer bonds issued in the United States necessitates locating a private seller.

Unlike stocks, most bonds are traded over the counter, which means you’ll need to utilize a broker to buy and sell them. Treasury bonds, on the other hand, are an exception: you can buy them straight from the US government, bypassing the middlemen. The difficulty with this arrangement is that investors have a tougher time

Paper savings bonds are no longer marketed by financial institutions as of January 1, 2012. Treasury’s goal of increasing the number of electronic transactions with citizens and businesses is being furthered by this measure. SeriesEE savings bonds are low-risk savings instruments that yield interest until 30 years have passed or you cash them in, whichever

Until they mature, Treasury bonds pay a fixed rate of interest every six months. They are available with a 20-year or 30-year term. TreasuryDirect is where you may buy Treasury bonds from us. You can also acquire them via a bank or a broker. (In Legacy Treasury Direct, which is being phased out, we no

Treasury bonds can be an 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

If all other factors are equal, a longer-term bond will typically pay a greater interest rate than a shorter-term bond. 30-year Treasury bonds, for example, often pay a whole percentage point or two more interest than five-year Treasury notes. The rationale for this is because a longer-term bond involves a bigger risk of higher inflation

Tax-Free Yield/(1 – Tax Rate) = Tax Equivalent Yield. Municipal bonds are likely to benefit higher-income investors (with theoretically greater tax bills) more than persons in other tax categories. Who buys municipal bonds and why? Municipal bonds (munis) are issued by state, county, and local governments to support public works projects such as road maintenance