What Is a Bond Ladder?

A bond ladder is a supportive strategy in which investors layer bonds with different maturity rates into a single portfolio.

What are Bond Funds?

Bond Funds have two primary goals: to generate passive income and to hedge against stock market volatility.

How do Bond Ratings Work to Determine Credit Worthiness of a Bond?

Bond ratings work to determine the credit worthiness of a bond. They’re a signal to prospective investors for reliability.

What are Bond Futures?

Bond futures are an agreement between two parties to transact securities, in this case bonds, at some time in the future.

What is a Bond Quote?

A bond quote is what signals whether any given bond trades at a discount or a premium. This gives investors context for bond prices.

What are Bond ETFs?

Bond ETFs track specific indices and seek to mirror their movements, as a way to provide the stability of a broad-market approach.

What is Bond Equivalent Yield?

Bond equivalent yield is a way of valuing discount bonds to determine annual percentage yield using specific benchmark tools.

What is a Bond Covenant?

A bond covenant spells out the most important stipulations of a bond that could lead to default if not adhered to properly.