Understanding the differences between bond funds and bond ETFs can help investors choose the instrument that is best for building a diversified bond portfolio.
Discover some of the key factors for determining a bond fund's risk-return profile and its relative performance. Understanding these metrics are important.
Understanding Bond Funds For many investors, a bond fund is a more efficient way of investing than buying individual bond securities. Unlike individual bond securities, bond funds do not...
Investopedia / NoNo Flores Understanding High-Yield Bonds A high-yield bond, or junk bond, is... in bond funds. Small investors may want to avoid buying individual high-yield bonds directly...
Learn about the benefits of fixed-income funds, bond funds, and bond ETFs, and see if they're right for you.
the bond principal must be paid back. The interest payment is part of the return that bondholders earn for loaning their funds to the issuer.3 The interest rate that determines the payment...
Understanding the Sinkable Bond From the viewpoint of the corporations and municipalities... The yield to average life is also important when bonds with sinking funds are trading below par...
If the bond market believes that the FOMC has set the fed funds rate too low, expectations of future inflation increase, which means long-term interest rates increase relative to short-term...
All issuances of this bond are sold at par value. Then, macroeconomic conditions in the world worsen, and the Federal Reserve begins lower the federal funds rate. By extension, many other...
Schroders guide on understanding fixed income & bonds - Learn more about bonds, their mechanics, and the different types.