Bonds
Lending to governments and companies — yield, duration and credit risk.
A bond is a loan to a government or company that pays interest and returns the principal at maturity. Bonds are often used to balance the risk of equity exposure.
Bond prices move inversely to yields. Duration measures how sensitive a bond is to interest rate changes, and credit quality measures the risk of not being repaid.
What to be careful of
- Rising rates usually push existing bond prices down
- Credit rating reflects repayment risk, not price stability
- Inflation erodes the real value of fixed coupons
Risk warning. Trading leveraged products involves significant risk and may not be suitable for all investors. You should understand the risks before investing.
The information provided on this website is for educational and informational purposes only. Nothing on this website constitutes personal financial advice, investment advice, or a recommendation to buy or sell any financial instrument. Users should conduct their own research and seek independent professional advice where appropriate.