Bonds and Debt Instruments
Bonds and bond funds can be extremely helpful to anyone concerned about capital preservation and income generation. They also can help partially offset the risk that comes with equity investing. Bonds and bond funds hold opportunity—but they also carry risk.
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Smart Bond Investing
You've heard it before: Asset allocation is the foundation of prudent investing. You've probably heard this before, too—your portfolio should contain a mixture of stocks and bonds. This is sound advice. But do you understand the critical characteristics of bonds? This comprehensive guide provides a wealth of information about investing in bonds and bond funds. Bond Funds
Before you invest in a bond fund, it is important that you understand the different fund types and how bond funds differ from individual bonds. For instance, one common misconception about bond mutual funds is that there is no risk to principal. This is not the case: Your initial and subsequent investments will fluctuate—and indeed may decline—just as they do if invested in a stock mutual fund. Learn more. U.S. Savings Bonds
Savings bonds are issued by the federal government and may be purchased for an investment as low as $25. Learn more.
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Interest Rate Risk
Remember the cardinal rule of bonds: When interest rates fall, bond prices rise, and when interest rates rise, bond prices fall. Interest rate risk is the risk that changes in interest rates in the U.S. or the world may reduce (or increase) the market value of a bond you hold. Interest rate risk—also referred to as market risk—increases the longer you hold a bond. Learn more. Investor Alerts
A promissory note is a form of debt that companies sometimes use, like loans, to raise money. While promissory notes can be legitimate investments, some promissory notes sold widely to individual investors are not. Read Promissory Notes Can Be Less Than Promised. FINRA Market Data
This Web site contains real-time transaction information on investment grade, non-investment grade and convertible corporate bonds. Also use the site to check FINRA-Bloomberg Bond Indices. Before You Invest
Here are 10 things to consider before you invest in bonds or bond funds.
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Read Frequently Asked
Questions About Saving &
Investing
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