bond Archives - Fairmont Equities

The top 5 risks of investing in bonds

May 12, 2022 by Lauren Hua

Investing in equities has always been thought of as riskier than bonds. However, investing in bonds is not without risks. These are the top 5 risks involved in investing in bonds. 1.Income received from investor is fixed There is a fixed upside in income with bonds. When an investor invests in a bond, they will receive a pre-determined fixed payment. Whereas in equity investments, if a company has an increase in profit, they may decide to pay this out to …

What do bond yields indicate about interest rates?

June 3, 2021 by Lauren Hua

Bond yields are closely followed by investors as these affect interest rates. In this article we discuss what the relationship is between bond yields and interest rates and how it affects the share market. What are bonds? A bond is a loan taken out by a company or a government when they want to raise money. Purchases of bonds are essentially giving the issuer a loan and the issuers agree to pay back the face value at a specific date. …