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    Higher Priemium

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    arghoondar
    Higher yield bonds carry higher risk than lower yield bonds due to their lower credit quality but can provide attractive yields compared to government bonds or CDs. While corporates can offer dependable income for investors seeking to preserve principal, their higher yields also generally come with higher risks. Key market factors like the federal funds rate impact short term bond markets, while long term bond rates are more driven by supply and demand forces.

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    Higher Priemium

    Uploaded by

    arghoondar
    5 views1 page
    Higher yield bonds carry higher risk than lower yield bonds due to their lower credit quality but can provide attractive yields compared to government bonds or CDs. While corporates can offer dependable income for investors seeking to preserve principal, their higher yields also generally come with higher risks. Key market factors like the federal funds rate impact short term bond markets, while long term bond rates are more driven by supply and demand forces.

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    Higher yield bonds carry higher risk than lower yield bonds due to their lower credit quality but can provide attractive yields compared to government bonds or CDs. While corporates can offer dependable income for investors seeking to preserve principal, their higher yields also generally come with higher risks. Key market factors like the federal funds rate impact short term bond markets, while long term bond rates are more driven by supply and demand forces.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
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    Download as docx, pdf, or txt
    5 views1 page

    Higher Priemium

    Uploaded by

    arghoondar
    Higher yield bonds carry higher risk than lower yield bonds due to their lower credit quality but can provide attractive yields compared to government bonds or CDs. While corporates can offer dependable income for investors seeking to preserve principal, their higher yields also generally come with higher risks. Key market factors like the federal funds rate impact short term bond markets, while long term bond rates are more driven by supply and demand forces.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
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    Download as docx, pdf, or txt
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    Higher priemium

    Higher yield bond = higher risk bond

    Credit Quality o

    Bond term

    YTM what is actual investment of the bond

    Liquidity .. if there is market out there if I go out today to sell

    Market factors

    1. Short term bond market determine by federal fund rate


    2. Long term are more market driven supply & driven type of interest rate

    Attractive yields. Corporates usually offer higher yields than comparable-maturity government
    bonds or CDs. This high-yield potential is, however, generally accompanied by higher risks.

    Dependable income. People who want steady income from their investments, while preserving
    their principal, may include corporates in their portfolios.

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