Jul 30, 2018
Today’s episode stems from the question last week from William about investment bonds (an investment vehicle, kinda like a life insurance product). Today however, we’re talking about the asset class of Bonds
What are bonds?
Basic Terms
Types of Bonds
– Who needs to raise money?
Designed to be a defensive asset
Due to the fixed rate nature of a bond and lower level of risk they carry in general, bonds are considered a defensive asset.
Where the bond is being bought is also a factor.
That is, the Primary or Secondary market
Mechanics
How much will the price change when interest rates change?
This is based on Duration:
Where Bonds Fit in?
The negative aspects of bonds
Summary