What are bond funds? What are serial bonds? What is a bond indenture? What are bearer bonds? What are term bonds? What is a mortgage bond? What is a savings bond? In business, what are the types of bonds? What are municipal bylaws?
Bond mutual funds are just like stock mutual funds in that you put your money into a pool with other investors, and a professional invests that pool of money according to what he or she thinks the best opportunities are. Some bond funds aim to mimic the broad market, investing in short-...
A city might use the funds to finance things such as a new bridge or highway. The maturity of a muni bond typically ranges from one to 10 years. Interest payments from muni bonds aren’t subject to federal taxes. And if the bonds are issued by the state or city in which the investor...
These municipal bonds are issued by governmental entities, but are not backed by revenues from the project they are used to sponsor, such as a toll road. While some general obligation bonds are payable from general funds, others are backed by dedicated taxes on property. The former types of ...
budgets. Some municipalities have defaulted on municipal bonds. The “muni bond” market seems to still be highly rated by ratings agencies, but some professionals are hinting that the municipal bond may not be the “lock-box” that it previously had been for pension funds and other investments...
Corporate bond funds. These funds invest in corporate bonds. Corporations issue bonds to expand, modernize, cover expenses and finance other activities. The yield and risk are generally higher than government and most municipal bond funds. Rating agencies help you assess the credit risk by rating ...
Bond ETFs are funds that invest in a basket of bonds. Picking individual bonds can be challenging, time-consuming, and expensive; bond ETFs allow you to buy a broad portfolio of bonds with the click of a button, for a known price and relatively low fee. ...
Most bond funds are comprised of a certain type of bond, such as corporate or government. They are further defined by the time it takes them to mature. They could be short-term (less than three years), intermediate-term (three to 10 years), and long-term (10 years or more). ...
What Is a Municipal Bond? Municipal bonds, also known as “muni bonds” or “munis,” are essentially loans that investors make to local governments. These investments help pay for local needs like roadwork, bridges, or school construction. Municipal bonds are often exempt from most federal, ...
Bond ETFs are a far newer entrant to the market when compared to mutual funds, withiShareslaunching the first bond ETF in 2002.Most of these offerings seek to replicate various bond indices, although a growing number of actively managed products are also available. Because of their passive appro...