In this episode of Pro Money Talk, we explore bond basics, taking a close look at what bonds are and why they play such an important role in portfolios. Far from being bland and boring, bonds exhibit a remarkably wide variety of characteristics that range from super-safe to risky, from steady to volatile, and they can serve a number of roles in the portfolios of astute investors. You’ll learn about the different types of bonds, basic determinants of performance, bond ladders, individual bonds versus bond funds and how interest rates affect bond prices. We even mention our three favorite bond mutual fund managers.
We’re planning to cover more advanced bond topics in future episodes of Pro Money Talk, including bond risk issues, economic cycles and performance, sensitivity to interest rate changes (duration), costs, investment strategies and investment considerations for different types of investors and more. Stay tuned!
Thanks to listener Tony H. for suggesting this topic.