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Fundamentals: Bonds

Term Loans and Bank Loans: Alternative Investments

Creditworthy corporations can access capital through a variety of means, including bank loans, term loans and the issuance of bonds. These bank loans can also offer solid investment opportunities. Uses…

December 16, 2014
2 mins Read

Fundamentals: Bonds

Junk Bonds: High-Yield Bonds, Credit Quality, and Risk

Junk bonds are speculative but investors find them attractive as credit risk can be more than compensated for by their higher yields. But most individual investors should steer clear due…

December 16, 2014
2 mins Read

Fundamentals: Bonds

Extendable and Retractable Bond: Maturity Date Definition

An extendable or retractable bond offers investors the opportunity to take advantage of movements in interest rates. However, the extension or retraction feature means that the price of these bonds…

December 16, 2014
3 mins Read

Fundamentals: Bonds

What are convertible bonds?

Convertible bonds are fixed income securities with equity features, since they can be turned in common stock. They can provide a higher current yield and less downside, and are usually valued through a “breakeven” analysis.

December 16, 2014
3 mins Read
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Fundamentals: Bonds

Issuing a Foreign Bond

Governments, corporations want to fund their needs at the lowest possible absolute rate. And that is why they tap outside markets and currencies and issue a foreign bond. What is…

December 16, 2014
2 mins Read

Fundamentals: Bonds

Inflation-Linked Bonds: Index Linked Bonds and Interest Rates

Investors can find protection from rising inflation from inflation-linked bonds. Since they are principal indexed, the principal is increased by the change in inflation over time. Factors That Affect Inflation-Linked…