Bonds 101: What to know about the investment asset class

to governments or corporations. Companies and national, provincial and municipal governments issue bonds to raise money to pay for projects and operations, such as financing new public infrastructure or to fund capital expenditures, research and development, or even continuing operations.

, which are traded on the stock market, and via bond mutual funds. These funds tend to invest in a mix of bond types for diversification purposes, and you can purchase funds that invest specifically in short-, medium- or long-term bonds, or a mix of all terms.Some bond funds are actively managed, while others passively track the performance of a bond index like the FTSE Canada Universe Bond Index.

Even as rising rates batter bond prices, they’re a boon for yields, which move inversely with prices. from bonds over the next 10 years, according to 2022 guidelines that Canadian financial planners use for projecting long-term investment returns, inflation and more.They also act as a cushion in your portfolio during times of equity market volatility.

Singapore Singapore Latest News, Singapore Singapore Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Bank of England expands efforts to stabilize bond marketThe Bank of England said it will now purchase up to £10-billion of long-term bonds a day, including £5-billion of conventional bonds and £5-billion of index-linked bonds
Source: globeandmail - 🏆 5. / 92 Read more »

Portfolio mixology: How ETF investors are blending stocks and bonds in a tough yearTalk about asset allocation is everywhere in investing
Source: globeandmail - 🏆 5. / 92 Read more »

Bank of England expands efforts to stabilize bond marketThe Bank of England on Tuesday expanded its efforts to stabilize the bond market to include inflation-linked bonds amid continuing concerns about the government's budget. Translation: Cebtral banks are manipulating interest rates to keep money as cheap as possible.
Source: CTVNews - 🏆 1. / 99 Read more »

Bank of England expands efforts to stabilize bond marketThe Bank of England said it will now purchase up to £10-billion of long-term bonds a day, including £5-billion of conventional bonds and £5-billion of index-linked bonds
Source: globeandmail - 🏆 5. / 92 Read more »