When you buy a bond, you are loaning money to a company, government, or agency. Investors can purchase individual bonds or bond funds. Government, agency, and municipal bonds may offer some tax advantages. Corporate bonds are taxable.Bonds...
will have less money coming in that can be reinvested at the higher rate. if interest rates fall, refinancing will accelerate and you'll be forced to reinvest the money at a lower rate. read more about agency bonds read more about gnma bonds municipal bonds these bonds (also called ...
A debt security is a type of financial asset that is created when one party lends money to another. For example, corporate bonds are debt securities issued by corporations and sold to investors. Investors lend money to corporations in return for a pre-established number of interest payments, al...
A pool of 30-year mortgages will have an effective duration for investors of seven to eight years. The high quality of government backed MBS and this duration puts them in competition with U.S. Treasury five- to 10-year bonds. Treasury securities are considered the safest income investments. ...