In an actively managed fund or ETF the manager may invest according to what they think the best opportunities are, in accordance with the fund’s stated investment goals. In an indexed fund or ETF the manager will seek to track the composition and performance of the underlying bond index. ...
When you invest in bonds, you essentially lend your money to the issuer in exchange for periodic interest payments (known as coupon payments) and the return of the bond’s face value (known as the principal) when it matures.The interest rate is determined by the size of the coupon and ...
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According to debt capital market (DCM) bankers, the market will mature only if issuers move from swap market-driven trades to the real need for the renminbi. It is noted that the real usage of renminbi has declined as corporates avoid the market.Wong...
and asset management firms. Individual investors who wish to invest in bonds may do so through a bond fund managed by an asset manager. Many brokerages now also allow individual investors direct access to corporate bond issues, Treasuries, municipal bonds (munis), and certificates of deposit (CD...
These ETFs hold a diversified portfolio of bonds with similar maturity dates. So you can use them to create new bond ladders…or plug holes in existing ladders when bonds mature or get called…or even use them to simply reinvest coupons from your existing bonds. ...
The different bond funds consist of government bond funds that invest in various types of US Treasury bonds, municipal bond funds that invest in different types of municipal bonds, and corporate bond funds that invest in various bonds issued by corporations. Bond funds are also categorized into lo...
In order to choose whether to invest in bonds or bond funds, it’s important to understand the key differences between the two, along with the benefits and risks involved. Learn more
A bond futures contract trades on a futures exchange and is bought and sold through a brokerage firm that offers futures trading. Bond futures are used by speculators to bet on the price of a bond or by hedgers to protect bond holdings. ...
This is caused by a decrease in trading activity by small investors (trades less than or equal to $5000 volume). Lawrence (2013) uses discount brokerage data of individual small investors, and finds that individual investors invest more money in firms with more readable annual reports. Loughran...