investing

Bonds are a way to loan money for investors who do not have the large amount of capital needed to fund most corporate or municipal projects. Instead of going to a bank and seeking a loan for a full amount needed, an organization can…

In June 2020, the U.S. federal public debt was over 20 trillion dollars. The largest debt in the world, this figure expands every day. As the budget deficit of the U.S. government increases, the U.S. will continue to sell Treasury bonds…

Bond investing has its advantages. Bonds typically have less volatility than stocks and generally pay higher interest rates that savings accounts. Some types of bonds are even tax-free at the federal, state and local levels. Choosing bonds…

Corporations and governments normally sell bonds and other securities through a broker/dealer such as a bank that acts as the underwriter. The underwriter takes on the responsibility and the market risk of selling the bond issue to…

A prospectus for bonds is a document that explains all the information about the company issuing the bonds. The prospectus explains the risks involved, as well how investors' money will be used. In other words, any information an investor…

All bonds have what is known as a "par value," which is normally $1,000 per bond. A premium bond is simply a bond that is priced above par value. For example, if the bond you want to buy has a par value of $1,000 but costs you $1,100 to…

Whether you are looking for current income, safety or a combination of both, bonds and bond mutual funds can be a good investment. Bond mutual funds can also be a good balance against the risk of stock market investing and many investors…

U.S. savings bonds, such as the series EE, can be excellent investments as well as gifts. Many parents and grandparents purchase series EE savings bonds for their children and grandchildren on special occasions. Those parents and…

The U.S. government issues many different types of bonds. Unlike stocks and corporate bonds, Treasury bonds and savings bonds are backed by the full faith, credit and taxing power of the U.S. government, making them the closest thing to a…

Insurance companies issue bond insurance contracts to protect investors from the consequences of default. These companies are typically called monoline insurers. The bond insurance contract pays out a claim if the bond enters default, which…