Bond Market

The Role of Bonds in Capital Preservation Investing in bonds plays a fundamental role in capital preservation. This form of investment is often deemed safer than equity investments on the premise that the bond issuer will deliver on its obligation to pay back the principal amount and interest of the bond. Before diving into the …

Understanding the Concept of a Bond’s Yield to Next Repricing (YTNRepricing) Introduction In the realm of fixed-income investments such as bonds, understanding how yields and pricing mechanisms function is crucial to making informed investment decisions. One such integral concept is the Yield to Next Repricing (YTNRepricing). This term might seem complex at first, but it’s …

Understanding Bond’s Yield to Next Redemption (YTNRedemption) The bond market can be an intriguing platform for investors due to its perceived safety and regular income through interest payments. A vital part of grasping the dynamics of this market includes understanding various terms used within it. One such term that often comes up is ‘Yield to …

Managing Bond Risks: A Comprehensive Guide for Investors Understanding Bond Risks Before delving into how to manage bond risks, it’s crucial to first understand what bond risks entail. The bond market, like any other financial market, carries a certain degree of risk for investors. Despite being frequently touted as relatively safe investment vehicles, bonds are …

Understanding Sovereign Bonds A sovereign bond is a form of debt security issued by a national government. These bonds play a lynchpin role in global financial markets. They are often considered among the safest investments, as they’re backed by the revenue-generating power and the credibility of the issuing nation. However, just like any investment, they’re …

Understanding the Influence of Inflation Risk on Bonds Inflation risk, or the fear that future inflation will undermine an investment’s value, is a significant concern for bond investors. When inflation rises, it can erode the purchasing power of the fixed interest payments that bonds provide, which is a concern for bondholders. To get a clear …