Bonds
Capital Ingenuity can help you understand the complexities of investing in bonds.

A bond is a type of debt security an investor can purchase. When an investor purchases a bond of a particular entity, such as a corporation or a government, the investor becomes a creditor to the entity and may be entitled to interest payments on the debt. Investors in bonds, however, do not have any ownership interest in the entity as they do in the case of purchasing stocks.

There are many different kinds of bonds including, but not limited to, United States government bonds, municipal bonds, and corporate bonds. Each of the different kinds of bonds can have many different characteristics as well. For instance, bonds can differ in maturity date, yield, yield to maturity, credit rating, and interval of interest payment.

Many investors view bonds as a more conservative investment. From certain perspectives, this can be true. However, it is certainly possible that a bond can have a higher level of risk than certain stocks. The truth of the matter is that bonds need to be analyzed on a case by case basis to really understand the level of risk that is being assumed by purchasing the bond. It is possible for an investor to lose some or all of their money investing in bonds.

At Capital Ingenuity, we help our clients to understand to complexities of investing in bonds as well as helping them to understand their potential rewards.