Bond is is debt instrument that is issued by a company or government institution. In Bond, you will receive regular interest on the amount you loaned to the company. it is better to choose a company with high credit ratings in order to reduce risk
What is bonds?
- Thread starter Reedex
- Start date
The least risky are the bonds issued by governments which are quite solvent, for example one of the most reliable bonds has always been the US, on the contrary, on the contrary, those less reliable are called junk bonds.
Bond investment is a risk-free investment to make money most especially if the company has high credit ratings.
Bonds of government companies are always better because you are sure to make profit from it.
Government bonds can also fail when it becomes insolvent and many can be converted into junk bonds when their credit risk rises, for example many bonds right now could be considered junk because of the risk of bank failure in some places, you have to look for those of the most solvent countries.
Not all governments. Nothing will make me to invest in bonds of African countries like Nigeria, Chad, Niger, etc . It is better fore to invest it in my life.
If the bonds fail it will not only be the investors who are harmed but the entire population of the country in question since the country will probably fall into default and have to be rescued as happened with Greece so it would affect many people.
Well, if your government is corrupt, it might be risky to invest in government bonds. If you live in a country where there is corruption., investing in corporate bonds can also be risky. In that case, you can try investing in your own business or stock market.
Yes, investments must be studied in depth since we are putting our money at stake, and more when there is enough capital that you do not want to lose, it is better to use bonds from reliable and solvent countries such as the US, Australia, etc.