Foreign fixed-income markets from a US investor perspective have been an unappealing asset class lately – with a glaring exception: corporate bonds in emerging markets. Year to date, this slice...

Government bond yields and interest rates have been rising all around the world. And investors aren’t quite sure what to make of it.Perhaps there is some complacency that has set in after years...

Bonds are continuing to rally into a fantastic bull trap. Here is the /ZB: The easier-to-trade instrument TLT is obviously sporting the same pattern. We’re just about to close that gap, which...

The one return stat that jumped out at me, was the +0.12% 10-year annual return for the TLT.That’s pretty grim. This is a table updated once a month. The only asset not included is...

Bonds issued by companies with a credit rating of BB or lower by S&P or Fitch, or Ba or lower by Moody's (NYSE:MCO), are considered junk bonds.Junk bonds, or high-yield bonds because the interest...

Since the vast scale of the U.S. bond market, its well-established financial market mechanisms, and excellent liquidity, U.S. Treasury bonds are considered a safe investment tool. As for corporate bonds, the market value of companies listed in the U.S. accounts for nearly half of the global market.

How should one start investing in bonds? Is it good to buy bonds?

There are four types of bond interest rates: Coupon Rate, Current Yield, Yield to Maturity (YTM), and Yield to Call (YTC).

There are two main ways to profit from investing in bonds: fixed income (interest income + repayment of principal at maturity) and capital gains (price difference).

Bonds, depending on their maturity period and risk level, offer varying returns. For instance, a typical medium-term investment-grade bond might yield an annualized return of about 3% to 6% (the yield is influenced by the current benchmark interest rate and the bond's risk level). In the long term, the overall return is usually slightly lower than stocks, but it is more stable, and the price risk fluctuation is relatively smaller. Generally, the price volatility in the stock market is about 2 to 3 times greater than in the bond market. However, some high-risk bonds, such as junk bonds, may have volatility levels closer to the stock market.