Investing in bonds

Bonds involve investors loaning their money to an organisation (ie a government or a company), and receiving fixed interest payments over a set amount of time. They are traditionally seen as a safe investment, and a key part of a diversified portfolio.

Bonds have always been a popular investment for British investors, for while their value can fluctuate according to factors such as interest rates and inflation, they provide investors with a regular income.

At MoneyWeek, we'll keep you up to date with what's going on in the bond markets – and whether or not it's a good time to buy them.

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A beginner's guide to bonds

It's easy to become confused about bonds – the term covers a wide range of financial products. Here, Ed Bowsher explains the main types of bond.

How gilts work and why they matter

In this video, Ed takes a look at UK government bonds – how they work, why they are important, and whether you should invest in them.

How corporate bonds work

In his third video on bonds, Ed looks at how corporate bonds work, how risky they are, and whether or not they're a good investment for most people.

MoneyWeek bond watch

Government bond yields around the world started climbing again in Autumn 2010. This showed investors getting more jittery about a toxic mix of soaring state borrowings and rising inflation, and so demanding bigger returns as compensation.

Global ten-year sovereign bond yields

America's ten-year bond yield is arguably the world's most important market indicator: it sets the cost of global long-term borrowing. As with other government bond yields, it falls (prices rise) when economic growth and inflation decline, because the fixed income stream paid by sovereign debt becomes more valuable. Quantitative easing (central bank bond-buying) has lowered yields further.

Eurozone ten-year sovereign bond yields

On the edge of the eurozone, rising default fears have been sending peripheral countries' sovereign debt yields soaring. The rough line in the sand so far is 7% - when yields breach that, it looks like the point of no return.

How will this play out? Watch this page to keep a close eye on those yields – they're a great early warning indicator of trouble ahead.

Spanish and Italian three-year sovereign bond yields

Here's the chart of Spanish and Italian three-year bonds. As investors' fears about these countries' finances grew, yields spiked up sharply.

An emerging-market bond crisis

A financial crisis always begins in some peripheral market, says Dan Denning. The next one could come from emerging-market bonds.

Don’t ignore the risks of retail bonds

The price crash of a London-listed bond should be a salutary reminder that some retail bonds are riskier than investors believe. Marina Gerner explains.

The assets to buy now - November 2015

Asset allocation is at least as important as individual share selection. We look at how the major asset classes have performed in the last 15 years – and what we expect for the next 15.

Investing lessons: what we’ve learned in our 15 years

There have been plenty of investment lessons for investors over the last 15 years. Cris Sholto Heaton looks at some of the most important.

Should you catch the fallen angels?

Buying ‘fallen angels’ – bonds and shares that have fallen on hard times – is one approach to investing. Matthew Partridge explains how it works.

Italian two-year yields go negative

Desperate investors are paying to loan Italy their money. Are they really so crazy, asks Dan Denning. Or are they on to something?

Vultures start to circle corporate bonds

Since the financial crisis, record-low interest rates and printed money have inflated a bubble in corporate borrowing. Now it’s leaking air.

The assets to buy now - October 2015

Asset allocation is at least as important as individual share selection. So where should you be putting your money? Here’s our monthly take on the major asset classes.

Does 1 October mark the beginning of the end for the debt bubble?

According to one uncannily accurate financial forecaster, today marks “peak government” and the bursting of the sovereign debt bubble. Dominic Frisby looks at what it means for your money.

What will happen as US interest rates rise?

Interest rates have been so low for so long, asset prices are likely to come under pressure.

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