Stack Exchange Network

Stack Exchange network consists of 174 Q&A communities including Stack Overflow, the largest, most trusted online community for developers to learn, share their knowledge, and build their careers.

Visit Stack Exchange

Questions tagged [bonds]

Use this tag for questions that relate to debt instruments known as bonds. Generally, money is lent to governments or corporations that is paid back with interest.

8
votes
3answers
3k views

Why does interest rate go up when bond price goes down?

Why does interest rate go up when bond price goes down? Thank you very much!
4
votes
1answer
81 views

How to approach sale of municipal bonds (USA)

I am in a fortunate position of having invested income (about $41K) from a trust becoming fully mine in August. The trust was previously maintained by my mother, who invested the money in tax-free ...
5
votes
2answers
2k views

Asset classes: Is a Guaranteed Investment Certificate (GIC) considered a bond?

When we think of asset classes, there are 2 types: stocks and bonds. Where does an investment like a GIC fit in? It is not a bond, nor is it a stock.
2
votes
2answers
190 views

What are the implications of falling US Treasury Bond Rates?

As seen from the table, the rates have decreased whether you compare to yesterday, last week or last month. Does it mean that investors think that the US is going to be deflating?
7
votes
2answers
591 views

Looking for suggestions for relatively safe instruments if another crash were to happen

My current investment strategy involves having 20% as liquid cash, 30% as bonds (aggregate bond fund), and 50% as a mix of domestic and international equity. The stock portion is invested via index ...
4
votes
3answers
2k views

Does an issue of bonus shares improve shareholder value?

What I know is that, a splitting of shares doesn't improve shareholder value. It merely increase the number of shares. Hence, a splitting of stock shares improves market liquidity. But what about ...
6
votes
3answers
259 views

Bond Vigilantes: Prices, yields and incentives

I read on Wikipedia that a bond vigilante is "a bond market investor who protests monetary or fiscal policies they consider inflationary by selling bonds, thus increasing yields.". I tried reading ...
19
votes
2answers
2k views

How would bonds fare if interest rates rose?

The first thing I learned about bonds is that when interest rates rise, the price of existing bonds tends to fall. Unfortunately, I didn't learn much else about bonds. So I have a couple questions ...
5
votes
1answer
280 views

Who sets the prices on government bonds?

I noticed my country Greece wanted to sell bonds last year and they were stating "If they go above 7% we won't sell.". But who sets the price if not them? Why can't they say "the price is 5% and if ...
3
votes
2answers
16k views

What is the difference between a bond and a debenture?

What's the difference between a bond and a debenture? Are they simply different words used to mean the same thing? (e.g. debenture sounds more business-like than bond).
18
votes
2answers
2k views

What is the best way to invest short term without losing principal?

My wife and I were planning to buy a house this year, but the plan fell through, so right now we are sitting on the money that we saved towards down payment and renovations (prior to now money was in ...
4
votes
2answers
94 views

What is the best resource to research the current state of asset classes for mutual funds?

I have a fairly simple asset allocation as follows: 50% Large Cap stocks 15% Small Cap Stocks 5% REIT 10% International Stocks 20% Bonds What is the best web site to track how each one of these ...
6
votes
2answers
951 views

Why is my corporate bond portfolio decreasing when my stock portfolio is increasing?

For some reason my CFT, CIU, CSJ, and LWC are -2.95% overall, when the rest of my stocks are at +8%. Is there any specific reason why Corporate Bonds are going down while the market is climbing?
3
votes
1answer
256 views

Are short-term bond funds subject to the same risk as long-term bond funds?

So much in the news about inflation, and interest appreciation dooming long-term bond funds. Are short-term bond funds affected by the same risk? Does this make investing a portion of your portfolio ...
7
votes
1answer
833 views

Where can I research corporate convertible bonds? [closed]

I am trying to research corporate convertible bonds online, but I have not found a site that provides this information. Does anyone know where I can find information online, e.g. subscription/non-...
7
votes
2answers
1k views

In the U.S., what is the easiest way to buy Australian government bonds?

The NY Times says: He cited the example of buying a one-year Australian government bond, yielding 5.25 percent. He said he believed that the American dollar was going to lose value and the ...
18
votes
5answers
9k views

What is a good asset allocation for a 25 year old?

I have a mid-sized portfolio (under $100K). And am currently in 100% stocks. I have seen some advice being given that states 80/20 bonds will yield similar returns as 100% stocks with less volatility.
7
votes
3answers
2k views

Where to find out conversion ratio between General Motors bonds and new GM stock?

I bought some General Motors bonds (ETF-traded under "XGM" symbol) when they were at depressed prices, before GM declared bankruptcy. GM is supposed to be having an IPO sometime in November, and ...
5
votes
1answer
1k views

Are money market instrument and short-term debt same?

I am learning some basic concepts in investment. Here is my questions: Are money market instruments and debt (short-term) same? From the two links I provided, they look almost the same to me, ...
4
votes
2answers
238 views

Are bond ETF capital gains taxed similar to stock or stock funds if held for more than 1 year?

Are gains on bond ETFs held for more than one year taxed at a lower rate, similar to stocks and funds holding stocks? I'm referring to the change in price of the fund, not dividends.
5
votes
2answers
185 views

Why are both government and commercial bond prices rising?

For the last 2 months both Gilt (UK government bonds) and UK commercial bond prices have increased. Many commentators have said the flight to government debt is a response to stock market uncertainty, ...
17
votes
3answers
3k views

How do you short US Treasuries?

As the US government continues to issue record levels of debt, I don't think it can continue to sell that debt at 2 - 3% interest. It will face the simple supply/demand law of economics - the more ...
1
vote
1answer
125 views

Will bonds (including international bonds) be able to offer more than 7% annual return?

I am presently getting a 6% return on my savings in a high-interest account, calculated daily, paid monthly. I regard stocks as too risky for my 4 year savings plan but am interested in bonds as they ...
4
votes
1answer
988 views

How to buy Greek bonds either directly or via ETF?

Is there an online brokerage, for UK citizens, that provides access to Greek bonds? Interactive Brokers doesn't. Alternatively, are there other assets (say ETFs) that have a percentage invested in ...
8
votes
3answers
952 views

Long Term Cash-Equivalent ETFs for “cash” allocation

My retirement account goal analyzer advises that I keep 3% in cash. My retirement date is over 30 years from now, so I can tolerate heavy volatility and certainly don't need liquidity. Does it make ...
7
votes
2answers
134 views

Do tax-exempt bond fund earnings need to be reported on taxes?

I'm deathly afraid of having to report bond/stock earnings to Uncle Sam. I feel like my tax returns are complex enough and I don't want to deal with any additional complexity. I'm looking for a way to ...
10
votes
3answers
281 views

What is a bond fund?

This answer suggested to invest in a Bond Fund and stated that it has been working well for that person. What is a bond fund? What are it's pros and cons?
4
votes
3answers
240 views

Understanding Interest Rate Risk: What is it, and what techniques do I use to minimize it?

I'm looking to develop a fixed-income account of bonds and dividend-paying equities. I've heard that bonds are susceptible to interest rate risk, but I don't really understand what that means. What ...
3
votes
1answer
159 views

When I pay off my mortgage loan, what would really happen?

Correct me if I'm wrong. I understand that when I open a mortgage loan, some underlying bond is issued and purchased by some investors. When the rate is much lower and I refinance and close my ...
4
votes
1answer
524 views

What are prize bonds? Are prize bonds a good investment?

What are prize bonds? Are prize bonds a good investment?
9
votes
1answer
694 views

What is a Samurai bond?

I saw this term "Samurai Bond" while I was reading about investing and bonds, but I am not sure about what this is. Can you please explain?
15
votes
1answer
12k views

What are some examples of “fixed income” investments?

I'm using an online tool that my broker provides for balancing my portfolio according to my investor profile and it breaks down the suggested allocation into the following categories: Large Cap ...
11
votes
2answers
556 views

Has anyone found U.S. Savings Bonds to be effective investing?

Since I was a small child, my grandparents have given all of their grandchildren savings bonds on our birthdays. I'm not sure if it makes a difference, but they are always "EE" series. I had to use ...
15
votes
4answers
18k views

How do currency markets work? What factors are behind why currencies go up or down?

How do currency markets work? What factors are behind why currencies go up or down? What roles do governments, central banks, institutions, and traders have in the process?
9
votes
3answers
552 views

Should I buy individual bonds for my retirement portfolio, or stick to funds/ETFs?

To avoid the fees on bond mutual funds or exchange traded funds I have been thinking of buying actual bonds inside of my retirement portfolio. Does that make sense or are there drawbacks to consider?