Smart Bond Investing

  • Introduction

Introduction

 

Do you understand the critical characteristics of bonds?

 

That's where this guide comes in. We've written it to help current and future bond investors better understand this important component of a balanced portfolio.

 

Bond Basics
Learn what a bond is and key information about bond maturity and pricing.

 

Yield and Return
There are different types of yield—and different ways to figure return. There is also a very important relationship between bonds and inflation.

 

Understanding Risk
From interest rate risk to inflation risk, bonds carry their own set of risks that investors should understand.

 

Types of Bonds
Once you've decided to invest in bonds, the next question is—which type of bond? Bonds tend to be broadly categorized according to who is issuing them.

 

Money Market Securities and More
A number of other bond categories exist that are primarily traded by professional investors and differ from Treasuries, munis, corporates, agencies and mortgage-backed securities.

 

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.

 

Buying and Selling Bonds
Bonds are bought and sold in huge quantities in the U.S. and around the world. Some bonds are easier to buy and sell than others—but that doesn't stop investors from trading all kinds of bonds virtually every second of every trading day.

 

Smart Bond Strategies
Buying bonds can be an important part of an investment strategy that balances risk and reward. Learn about using bonds as part of an asset allocation and diversification strategy and time-tested strategies.

 

Tips Before You Invest
Review this valuable list of tips before you invest in bonds or bond funds.

 

Learn More About Bonds
Use these resources to learn more about bonds and bond investing.

 

Bond Glossary
Learn the vocabulary of bonds with our glossary of key words and concepts.