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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.

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Difference between bond fund and bond index fund

A managed fund does research and buys bonds that it expects to do better than other bonds. Doing the research costs money, so they charge higher fees. … In theory the research is supposed to make the bonds they choose do better than the index as a whole. …
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1 vote

Why aren't bond mutual funds seeing huge selloffs now?

Maybe when that happens, bonds will fall. It hasn't happened yet though. In fact, there remain significant worries that the Fed has been overly aggressive in raising rates (as it was around 2008). …
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When the market crashes, should I sell bonds and buy equities for the inevitable recovery?

It sells expensive bonds and buys cheaper stocks on average. Occasionally it sells modest priced bonds and buys over-priced stocks. But rarely enough that it is a better strategy overall. … It's true that bonds are less volatile than stocks, but they can still have bad years. A 70%/30% mix of stocks/bonds is safer than either alone and gives almost as good of a return as stocks alone. …
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36 votes

Opportunity to buy Illinois bonds that can never default?

That's why the bonds have been downgraded. They are still fine now, but that could change at any time. … That would lead to a complete loss of value for the bonds that you are considering. There still seem to be other options now, but they seem to be getting closer and closer to that. …
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