In fact, this is also the logic of the bond market. Bonds are essentially financial contracts sold to investors by government agencies or companies in order to borrow money with interest. In this process, the government, financial institutions, enterprises and other institutions are borrowers of funds; individual investors are borrowers of bonds; and underwriting and rating agencies act as intermediary services.
Bonds provide investors with a fixed return and can recover principal at maturity. Compared with the soaring and plummeting stocks, the market price changes less, the expected return is relatively stable, and the risk is lower.
Is it impulsive to see here about bond trading? Don't worry, FUTU BULL first shows you the types of bonds today. After all, only by knowing yourself and knowing your enemy can you make money from it.
When it comes to the classification of bonds, it is really a broad and profound knowledge, and the official method alone is enough to dazzle people
Want to find the secret to making money in this hemp-like picture? It's probably not easy. Here FUTU BULL according to the investment style, collated two major bond types.
01 interest rate debt-the first choice for conservative and pragmatic investors
For low-key and pragmatic conservative investors, low risk is the premise of all decisions, when the national credit endorsement of the "interest rate debt" is their best choice. Interest rate debt is mainly affected by the benchmark interest rate of bonds, including national bonds, local government bonds, policy bank bonds and central bank bills, the main issuer is the state or the government.
Back to the powerful father, there is no need to worry that they will not be able to pay off. Investment interest rate debt can be said to be "rock stable", credit default probability is extremely low, but may also be affected by macroeconomic conditions, interest rate changes and inflation and other factors.
Of course, with low risk is low yield, after all, God opened a window for you will inevitably close a door. (poison chicken soup warning! )
02 Credit debt-the preference of adventurous and competitive investors
If you are an investor who adheres to the concept of "making money a day and taking risks a day" and advocates the concept of "big money, big investment, big return" advocated by Li Ka-shing, then the credit debt with a good return may be more suitable for your person.
Credit bonds, as the name implies, in addition to interest rates, the issuer's credit (debt repayment ability) is an important factor affecting this kind of bonds. There are many kinds of credit bonds, the most common of which include financial bonds, corporate bonds, corporate bonds, medium-term bills and so on.
Among them, financial bonds are bonds issued by banks and other financial institutions. Because the credit rating behind the big guy is relatively high, the risk of default is smaller and safer. Although yields are at the bottom of the entire credit bond family, they are also higher than interest rates on Treasuries and bank deposits. Suitable for junior adventurers who want to try a bull knife.
The rate of return of credit bonds is often very attractive, so that people "back and forth", but the reason why credit bonds are also called "unsecured risk" is because you need to bear a certain amount of credit risk, accidentally or even lose the risk of losing capital.
Bonds are gradually favored by investors because of their low risk and better returns. And a wide variety of bond markets are a battlefield of courage and wisdom, and no matter what type of investor you are, you can't leave behind the delicate relationship between return and risk.