It’s not inaccurate to talk about the duration of your bond portfolio in simple terms—like time, or interest-rate sensitivity. However, a deeper understanding of duration can be vital these days as interest rates have been increasing from their record lows a few years back. First off, it’s important to make the distinction between duration and maturity. There’s a […]

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Key Takeaways Learn the basics of a diversified bond ladder Learn about the difference between short- and long-term bonds There is still risk associated with bonds, so research your choices carefully Like many investors, you might be concerned about rising interest rates as the Federal Reserve continues to tighten the screws. Bondholders may see higher […]

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Key Takeaways U.S. savings bonds are non-marketable, long-term debt securities issued by the Treasury Department to help pay for the government’s borrowing needs Their payout structure is deferred, yet effectively guaranteed, and historically stable Rates are low, but their low volatility means savings bonds can still be relevant for today’s investors U.S. savings bonds were […]

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Key Takeaways Types of bonds include Treasuries, municipal bonds, savings bonds, and corporate bonds Learn how interest rate changes affect bond prices, and why that might matter to a bond investor Bonds carry an element of risk, so it’s important to understand how bond ratings work Some investors use bonds when attempting to diversify and […]

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Key Takeaways Investors are hearing a lot these days about an “inverted yield curve” Yield curve inversions have occurred ahead of market downturns and recessions Learn about the yield curve, how it works, and what it could mean for the markets If you’re hearing a lot of talk about a possible “inverted yield curve,” you […]

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A rate hike cycle churning its way through the fixed-income world appears to be putting a charge back into certificates of deposit (CDs), a once-venerable mainstay that saw demand cut in half during nearly a decade of rock-bottom rates. You remember CDs—those plain-vanilla, timed bank deposits that pay a little rent for stashing your savings out […]

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Interest rates have been changing, driven by a number of factors including Federal Reserve policy, fiscal policy, exchange rates, economic conditions and expectations for inflation.  December 2016 marked the second time in a decade that the Fed had hiked interest rates. Since then, the Fed has hiked rates three times in 2017 and twice so […]

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Key Takeaways Muni bonds are debt securities issued by cities, states, and other municipalities to fund capital expenditures Interest payments from muni bonds are generally exempt from federal income tax Muni bond rates are often lower than those for higher-risk corporate debt If you’re aiming for something near the polar opposite of “hot investment topic” […]

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Key Takeaways Understand the relationship between rates and bonds, regardless of whether you hold bonds Learn how bonds can provide consistent income with the potential for profit Consider diversifying your portfolio with bonds, which are generally low risk As an investor, it’s important to have an understanding of the relationship between bonds and interest rates. […]

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Key Takeaways Brokered CDs can offer a wider selection and potentially higher yields than CDs purchased directly from a bank Most brokered CDs offer FDIC protection up to $250,000, but it’s important to check before you invest Brokered CDs can be purchased and sold on the secondary market, and are subject to the same market […]

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