Bonds (corporate and government)

Bonds (corporate and government)

On the entire spectrum of investments, bonds are about as low risk as they come. Used by governments and large corporations to raise funds, bonds allow investors to loan money to the issuer for a defined period of time at a variable or fixed interest rate. So you, say, hand over £1,000 today, get paid £50 a year from a 5% bond and then get your £1,000 back in five years' time. If you have a regular payment, like school tuition, docking fees for your yacht, or a henchman you keep on retainer, bonds allow you to take care of those essential costs with your portfolio income...

 
 
Asset class

Asset class

Broker

Broker

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