InvestingExplainer
How Bonds Work and Why Investors Watch Them
Bonds can reveal what investors expect about growth, inflation and the future cost of money.
Daniel Cho7 min read
Investing topic
Bonds
A bond is a loan made by an investor to a government or company, which pays interest over a set period and returns the original sum at maturity.
Why it matters
Bond markets set the cost of borrowing across economies and signal what investors expect about growth and inflation. They matter to investors, borrowers and governments alike.
What this topic covers
- Government and corporate bonds
- Yields and prices
- Credit ratings
- Duration and interest-rate risk
- The yield curve
Latest on Bonds
Related topics
This page is for informational purposes and does not constitute individualized financial advice.