The Common Types of Bonds You Might Want To Invest In

Bonds are simply loans that people make to corporations or specific governments. Bonds are issued as a way for governments or companies to raise money and then pay the money back over longer periods of time with interest.

What is a Bond? 

Stocks Vs. Bonds

Stocks: These are shares of a company you can invest in and own, whether through individual shares like Apple, or through an index fund that tracks specific companies and diversifies your stock investments more

Bonds: And bonds are considered to be safer investments, because they have less market volatility than stocks would have and generally, you have a guaranteed fixed interest rate.

What Are The Common Types of Bonds?

Treasury Bonds

The first common and often most important type of bond is Treasury Bonds, that are issued by the US Treasury Department.

What Are The Common Types of Bonds?

Corporate Bonds

Another popular type of bond are Corporate bonds, which is debt issued by corporations rather than the government. Now, these companies can raise money via debt for construction or large company projects — instead of raising money through equity or stock. 

What Are The Common Types of Bonds?

Municipal Bonds

Municipal bonds are debt issued by U.S. state and local governments who are raising money to fund a specific project, such as parks, road construction, or a bridge. 

Why You Might Want to Invest in Bonds

Bonds are an asset class worth adding to your portfolio to help balance out your investments and to weather against stock market corrections or other volatile time periods. 

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