List of Bonds Articles

Discover the key reasons to invest in short-term bonds in 2025. Learn about their benefits, such as lower risk, liquidity, and stable returns in an uncertain market

The coupon rate is the annualized interest amount. It is the percentage of the face value that a bond pays in one year.

Bonds have become one of the most effective financial instruments to offer regular income to the holder without a massive risk of losing the principal amount.

When the government or corporate requires funds, they may consider issuing bonds. They are financial instruments which raise funds from the general public for a specific period.

As businesses grow, so do their capital needs. Filing for an IPO is one way in which companies attempt to infuse massive funds into their company. An IPO or Initial Public Offering is the process by which a privately held company or a government entity raises money from the open market.

However, one thing that is usually missing when looking at a company’s success is their cash flow or how much capital they have to expand. Expansion is the fundamental factor for a company to ensure sustainability and increased profitability.

Businesses are inherently risky. It is the one thing that unites them across sectors and geographies. While organizations can't run without risks, they can mitigate them.

NCDs are unsecured debt securities. Investment in them could offer good diversification to those who also invest in equities. NCDs of investment grade issuers are also a secure form of investment.

In a stock ETF, the fund is generally composed of all the stocks in the index. This is not the case in most fixed income ETFs. The fund holds a fraction of the bonds that make up the underlying index.

The coupon rate (also called nominal yield) is the annual coupon payments paid by the bond issuer relative to the bond's face or par value.

The recent market correction has shifted the choice of investment from equity to debt instruments. Irrespective of the type, investment decisions are a trade-off between the potential rewards and risk involved and each investment is subject to some risk.

Fixed income securities are everyone’s favourite while safe capital investing is the first preference. Although, they offer lower returns as compared to equity and other risky investment options.

The simplest definition of a bond is when you invest or loan a sum of money to a government or corporate entity for a specific period (maturity period).

Government securities are bonds issued by the government. The government issues these bonds to raise debt money from the general public. It raises this money to meet its various expenditure requirements. Often the revenues of the government are not enough to meet all its expenditure requirements.

Discover how to invest in bonds with this step-by-step guide. Learn types, benefits, and tips to build a stable and diversified investment portfolio.