What is a Callable Bond?
Callable bonds give the issuer the chance to redeem bond issues early. In return, the buyer gets a bond with a higher coupon rate and likely a higher price upon…
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What is a Covered Bond?
Covered bonds are typically backed by pools of residential mortgages. They’ve become increasingly popular owing to their high level of safety and credit ratings. Covered bonds are a relatively new…
Fintech’s Reach Into Bond Markets Promises More Transparency and Efficiency
Financial technology reaches into many aspects of capital markets, including bond origination – an area that has long resisted change. But while a move toward more digital bond markets may take some getting used to, it promises to provide price transparency, efficiency and help inject liquidity into the world of fixed-income.
What is Yield Curve and What Does it Tell Us About The Economy?
The yield curve plots the yield spread between various maturities of bonds. Those spreads can provide an indication of where interest rates and inflation are heading – and also whether a recession is in the cards.
Why Do I Pay Taxes When My Fund’s NAV Falls?
It may feel counterintuitive to pay tax on a fund whose net asset value has dropped, but if you’re paying taxes, it’s because despite a lower NAV, the fund is still making you money.
Borrowing to Invest
Borrowing to invest can help to bulk up your portfolio. But great caution is advised and borrowers have to ask about the suitability of the investment and whether they’ve already taken on too much debt.
