Most bonds are taxable, meaning the income that bonds produce is taxable. On the other hand, the income from tax-exempt bonds, like tax-exempt municipal bonds, may be exempt from Federal, state, and local taxes. Emerging market (EM) bonds ...
The Federal Reserve uses open market operations to manage the supply of money in the economy and adjust short-term interest rates. This means that the Fed buys or sells some of thegovernment bondsand bills it has issued; this increases or decreases the money supply and, thus, lowers or rais...
These funds may also invest in bonds issued by government-sponsored enterprises, such as Fannie Mae and Freddie Mac, that are not explicitly backed by the U.S. government. Because of the high credit quality of their underlying investments, government bond funds will not offer the highest yields...
This legal structure is backed by the mortgages it owns. But from a given pool of mortgages, a CMO can create different classes of securities that have different risks and returns. For example, it can create a “safer” class of bonds that are paid before other classes of bonds. The last...
Money market mutual funds are among the lowest-volatility types of investments. Income generated by a money market fund is either taxable or tax-exempt, depending on the types of securities in which the fund invests.Fidelity Learn What are money market funds? A money market mutual fund is a ...
High-yield municipal bonds have been one of the best-performing fixed income asset classes so far this year. Many investors are asking: Do they deserve a place in my portfolio? We believe high-yield munis are an asset class that carries additional risks, but is worth consideration by investor...
“Ginnie Mae, backed by the full faith and credit of the U.S. government, guarantees that investors receive timely payments. Fannie Mae and Freddie Mac also provide certain guarantees and, while not backed by the full faith and credit of the U.S. government, have special authority to ...
Corporate bonds differ from other types of bonds because they are almost always taxable at both the federal and state level. As a group, corporate bonds also have much more credit risk than the other types of bonds outlined above. Here are some of our more popular articles on corporate bonds...
municipal bonds with maturities of one month to seven years. Vanguard ESG U.S. Corporate Bond ETF (VCEB -0.39%) holds investment-grade taxable bonds issued by U.S. corporations that pass environmental, social, and governance (ESG) screening criteria. ESG is a framework for measuring and ...