Bond Investing Articles

Bond Investing image Think of the bond market as a mystery wrapped in an enigma? You are not alone. But this classroom pulls back the curtain so that you can analyze individual bonds with confidence.

Getting a Handle on the Bond Market

While people speak of the bond market as if it were one market, in reality there is not one central place or exchange where bonds are bought and sold. Rather, the bond market is a gigantic over-the-counter market, consisting of networks of independent dealers, organized by type of security, with some overlaps. Read more »

Why Bond Prices Go Up and Down

Bond prices go up and down in response to two factors: changes in interest rates and changes in credit quality. Many individual investors do not fully understand how changes in interest rates affect price. Read more »

Understanding Bond Credit Ratings

There is widespread misunderstanding about what credit ratings really mean, and how they affect the returns that you earn and the overall riskiness of your portfolio. Read more »

The Ins and Outs of Bond Yield

Assume that you are reading the financial pages of your favorite newspaper. You read that even though stock returns have been dismal for the last two years, bond returns have been very good. In fact, you read that over the past two years, many bond funds returned well over 15%. While the returns look pretty darn good relative to stocks, you may wonder: Does that mean I can expect to earn 15% next year if I buy bonds? If the answer is not obvious, read on. Read more »