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The Basics of Bonds
A lot of people see bonds as confusing, arcane, and downright boring when it comes to investment returns. But hold on. In 2000, investors learned why that can sometimes be a good thing. And when all was said and done, many equity investors had learned the hard way why diversification counts. Check out this informative series from SmartMoney and learn the fundamentals of investing in bonds.
Articles In This Series
 | Who Needs Bonds?
Think bonds aren't quite as sexy as stocks? You might want to think again.
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| What Exactly Is a Bond?
Technically, it's very simple: a bond is a loan and you are the lender. One appeal: their regular income makes them less volatile than stocks.
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| When Yields Go Up, Price Goes Down
Well, we might as well dive right into the yield and price mess.
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| Risk vs. Reward: How Bonds Behave
Just because bonds have a reputation as conservative doesn't mean they're always safe.
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| Types of Bonds
Here's a quick introduction to the bonds you'll encounter most often and the advantages of each.
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| Bonds vs. Bond Funds
Lots of people opt for bond funds when they seek to diversify their investments with fixed-income. Here's what you have to consider.
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The E*TRADE FINANCIAL Web site contains links to certain articles regarding bonds only as a convenience. The articles have been written by third parties not affiliated with E*TRADE FINANCIAL Corp. or any of its affiliates. No information contained in these articles has been endorsed or approved by E*TRADE Securities, and E*TRADE Securities is not responsible for the content. No information accessed through these articles constitutes a recommendation by E*TRADE Securities to buy, sell or hold any security, financial product or instrument discussed therein. This information neither is, nor should be construed, as an offer, or a solicitation of an offer, to buy or sell securities by E*TRADE Securities. E*TRADE Securities does not offer or provide any investment advice or opinion regarding the nature, potential, value, suitability, or profitability of any particular bond transaction or investment strategy, and you shall be fully responsible for any investment decisions you make, and such decisions will be based solely on your evaluation of your financial circumstances, investment objectives, risk tolerance, and liquidity needs.
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Refresh April 26, 2024 3:36 AM ET