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  • Overview
  • What are bonds?
  • How do bonds work?
  • How do you make money with bonds?
  • What makes bond prices rise and fall?
  • What are the major risks of bond investments?
  • What are the different types of bonds?
  • What is the relationship between maturity, risk and interest rates?
  • How does a company’s credit rating affect the bonds it issues?
  • How are the credit ratings of different issuers determined?
  • What are some special features available in the bond market?
  • What are convertible bonds?
  • What are "junk" or "high-yield" bonds?
  • What are bond indexes?
  • How do you buy bonds?
  • What are some drawbacks of buying individual bonds?
  • How have bonds performed in the past?
  • Do bonds have liquidity?
  • Who is promising your return?

Bonds


Who is promising your return?

Returns and yields of corporate bonds are promised by the companies that issue them, and are only as good as the companies themselves. If a company falls on hard times, it may not be able to pay the promised interest rate, or buy back the bonds at maturity. U.S. government bonds are backed by the full faith and credit of the U.S. government, and are generally considered to be the safe.


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