Bonds

bondsThe premise of bonds is simple: you invest your money to an entity and, after a set period of time, that money matures and can be collected for more than what you invested. Some of the more popular bonds are government bonds, which have been used in the past to fund wars, public utilities, and various federal and state projects.

The main caveat to bonds is their limited returns and the possibility of that yield barely even surpassing inflation. However, the security of bonds is priceless. Bonds are all but sure things and even if the issuer goes bankrupt, bond holders (lenders) are the first to be paid out. Bonds have their place in any portfolio, as they provide lockdown stability and even some growth.

Factory Data Suggest QE Is Here to Stay

The Fed won't taper with QE anytime soon if we get more news out of the manufacturing sector like we received Tuesday.

May Rate Roundup: CDs, Money Markets and Mortgages

Yields on money markets and savings accounts remained pretty much stuck in May, but mortgage and home loan rates lurched higher.

PIMCO Does Active ETFs Right

Three new actively managed ETF versions of bond mutual funds co-managed by Bill Gross will be hitting markets soon. Given PIMCO's pedigree, these should be good.

If You Own Bonds, Read This

BlackRock Floating Rate Income Strategies Fund (NYSE:FRA) could provide a protective hedge for bond holders from a rise in interest rates.

Nervous About High-Yield Bonds? You Don’t Have to Be.

Avoid the high-yield bubble via target maturity funds, which offer competitive yields with lower risk than traditional HY bond funds.

Emerging-Market Bonds Are Looking Riskier By the Day

Certain segments of the emerging bond markets have compelling long-term potential, but low yields on government and corporate debt means that investors are no longer being paid for the risks.

Don’t Chase Bond Safety With More Risk

Investors continue to roll money out of stocks and stock funds and into bond funds, but many might not understand the risks in that retirement strategy.

Vanguard’s Emerging Market Bond Fund: Better Late than Never?

The broader benefits of having emerging-market debt exposure are myriad, so it's no surprise Vanguard's getting into the game. But we'll have to wait to get a feel for how its new products compare to the competition.

Don’t Abandon Bonds in Your Quest for Higher Yield

As tempting as higher-yielding securities might be for fixed-income investors, they are in no way a replacement for bonds in the totality of your portfolio.

Is Global Growth Really Back on Track?

The rotation toward cyclical stocks would indicate that the global growth outlook is improving, but that's not the case. How long can cyclicals outpace defensive stocks if global growth continues to slow?

3 Risks to Consider Before You Buy a Bond

Even Treasury bonds aren’t necessarily the “risk-off” investment many consider them to be. Here’s why.

How Long Can High-Yield Bonds Rally?

The prolonged rally in high-yield bonds has exceeded even the most bullish expectations. What needs to happen for high yield to keep climbing from here?

Demographics Doom the ‘Great Rotation’

The Great Rotation doesn't appear to be coming to fruition as many have predicted, but don't be too surprised: Demographics fly in the face of a major shift to equities.

3 Ways to Put Your Money to Work Right Now

Bottom line: Trim your stock allocation, and buy only defensive names that are genuinely undervalued.

April Rate Roundup: CDs, Money Markets and Mortgages

April wasn't exactly the cruelest month for savers and lenders, but a sharp drop in interest rates didn't do them any favors. On the other side of the rate equation, it was a much better month to be a borrower.

The Great Rotation Is Bull$@#!

Tuesday's Twitter panic shows just how unprepared the market is to make a wide exodus out of bonds and into stocks.

Bill Gross Is Buying TIPS … Should You?

The modest selloff in TIPS has attracted the attention of both Bill Gross and ETF investors. But even if Gross may be right in buying TIPS, fund investors might not benefit.

Forget Gold — Buy TIPS for a True Safe Haven

Gold bugs the world over are lamenting the erosion of their "safe" asset. There's an important lesson for retirement investors -- stick to real safety with TIPS.

It’s Time to Tiptoe Into Europe

Nothing would be better for the U.S. than for other markets to get healthy -- and when they do, you’ll be ready with this bond fund.