For example, a bond ladder will enable the bond investor to set up a bond re-investment strategy, in steps. The barbell approach resembles a barbell in that bonds are purchased heavily in the short end and the long end. Medium term notes are left out of the mix. Finally, with the bullet strategy, each bond will share the same maturity date. They will typically start at different intervals, but they all will mature together. More...
| Bond Investing: Is It A Safer Place For Your Money? : |
 Bond investing is one way for investors to receive a regular fixed income, and it is a particularly popular form of investment during shaky times in the stock market. That is because bonds typically offer less volatility than stocks, although that is not to say that the bond market does not have unique risks of its own. Almost a trillion dollars exchanges hands daily on the United States bond market. More... |
| Bond Investments for the Retail Investor : |
 Bond markets have been around for almost as long as equity markets. For most retail investors, bonds are seen as less exciting compared to equities, probably due to the relatively stable nature of bond investments. One can probably even argue that media coverage of stock markets is far more extensive than coverage of the bond markets.More... |
| How do I handle bond premiums and bond discounts? |
 If you buy a bond that pays an interest rate over and above the market interest rate, implicit in your purchase price is something called the bond premium. The bond premium is just the market's way of adjusting the price of a bond that pays too high of an interest rate. More... |
| What is Bond Convexity ? : |
 Remember, as bond yields go higher, price goes lower. This relationship between price and yield has a convex structure in nature. The term used to describe this relationship is also known as convexity. Notice in the diagram below, we have drawn a tangent line a yield Y*. This tangent line is very similar to the concept of duration and represents the rate of change in price as interest rates change. When the steepness of this tangent line increases, so does the duration. More... |
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