• TYPES OF BOND MARKETS

THE GENERAL BOND MARKET CAN BE SEGMENTED INTO THE FOLLOWING BOND
CLASSIFICATIONS, EACH WITH ITS OWN SET OF ATTRIBUTES-
• CORPORATE BONDS
COMPANIES ISSUE CORPORATE BONDS TO RAISE MONEY FOR A SUNDRY OF
REASONS, SUCH AS FINANCING CURRENT OPERATIONS, EXPANDING PRODUCT
LINES, OR OPENING UP NEW MANUFACTURING FACILITIES. CORPORATE BONDS
USUALLY DESCRIBE LONGER-TERM DEBT INSTRUMENTS THAT PROVIDE A
MATURITY OF AT LEAST ONE YEAR.
CORPORATE BONDS ARE TYPICALLY CLASSIFIED AS EITHER INVESTMENT-GRADE
 OR ELSE HIGH-YIELD (OR "JUNK"). THIS CATEGORIZATION IS BASED ON THE
CREDIT RATING ASSIGNED TO THE BOND AND ITS ISSUER.
BOND-RATING FIRMS LIKE STANDARD & POOR’S AND MOODY'S USE DIFFERENT
DESIGNATIONS, CONSISTING OF THE UPPER- AND LOWER-CASE LETTERS "A"
AND "B" TO IDENTIFY A BOND'S CREDIT QUALITY RATING.
• GOVERNMENT BONDS
NATIONAL-ISSUED GOVERNMENT BONDS (OR SOVEREIGN BONDS) ENTICE BUYERS BY
PAYING OUT THE FACE VALUE LISTED ON THE BOND CERTIFICATE, ON THE AGREED 
MATURITY DATE, WHILE ALSO ISSUING PERIODIC INTEREST PAYMENTS ALONG THE
WAY. THIS CHARACTERISTIC MAKES GOVERNMENT BONDS ATTRACTIVE TO
CONSERVATIVE INVESTORS. BECAUSE SOVEREIGN DEBT IS BACKED BY A
GOVERNMENT THAT CAN TAX ITS CITIZENS OR PRINT MONEY TO COVER THE
PAYMENTS, THESE ARE CONSIDERED THE LEAST RISKY TYPE OF BONDS, IN
GENERAL.
• IN THE U.S., GOVERNMENT BONDS ARE KNOWN AS TREASURIES, AND ARE BY FAR
THE MOST ACTIVE AND LIQUID BOND MARKET TODAY. A TREASURY BILL (T-BILL) IS
A SHORT-TERM U.S. GOVERNMENT DEBT OBLIGATION BACKED BY THE 
TREASURY DEPARTMENT WITH A MATURITY OF ONE YEAR OR LESS. A TREASURY
NOTE (T-NOTE) IS A MARKETABLE U.S. GOVERNMENT DEBT SECURITY WITH A FIXED
INTEREST RATE AND A MATURITY BETWEEN ONE AND 10 YEARS. TREASURY BONDS (
T-BONDS) ARE GOVERNMENT DEBT SECURITIES ISSUED BY THE U.S. FEDERAL
GOVERNMENT THAT HAVE MATURITIES GREATER THAN 20 YEARS.