Investing in bonds

Trump's threat to Europe

Even if he loses, he could destroy the euro

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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.

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.

Could Saudi Arabia’s massive debt issue mark the top for the bond market?

Saudi Arabia’s record-breaking bond sale was the biggest-ever issue of emerging-market debt. We could just have seen the top of the bond market, says John Stepek.

Steer clear of oil junk bonds

Energy companies may be in much better shape that they were, but their revival in the junk-bond market is merely inflating a massive bubble further.

The bond bubble meets a pin

After a 35-year bull market, signs of a major turnaround are mounting in the bond market.

Central banks welcome inflation – what does that mean for bonds?

Central bankers are hoping that a little inflation could heal some of the damage caused by the Great Recession. But that won’t make bond investors happy, says John Stepek.

Italy’s 50-year bond madness

Italy’s sale of its first 50-year bond attracted €18.5bn of orders, far more than the government had expected.

Get set for rising bond yields

Interest-rate rises may be closer than we think, and the 35-year bond bull market could soon be over, says one analyst.

Bond bubble hisses air

Events in the bond markets this week are a reminder of how overstretched bond prices are and how investors are unlikely to make money from them.

No matter which way the bond bull market ends, it’s going to get ugly

The great bond bull market may have finally hit a turning point. And there are just two ways for it to end, says John Stepek: badly, or very badly.

The assets to buy now – September 2016

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.

Zero-coupon perpetual bonds: this April Fool is no joke

When the US Treasury considered zero-coupon perpetual bonds years ago, it was greeted as a joke. Not now, says Edward Chancellor.

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