The bond market, known as the debt or the credit market, is where investors go to buy and sell debt securities issued by corporations or governments. The U.S. bond market is more than 30 percent larger than the stock market in terms of total value of securities traded.
Bonds are given an investment grade, denoting the risk a bond has of defaulting. A bond with a “AAA” or “A” rating is high-quality, while an “A”- or “BBB”-rated bond is medium risk. Bonds with a BB rating or lower are considered to be high-risk.
Bonds are susceptible to risks such as inflation and interest rates. Aren’t those key topics of the day/month/year? So. Shouldn’t we be paying attention?
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