The financial crisis of the late 2000s may be an increasingly distant memory, but it has left a persistent legacy: stubbornly low interest rates on low-risk, low-reward investment vehicles. Rates on savings accounts, money market funds and government bonds remain at or below the rate of inflation. Of course, interest rates on consumer-facing mortgages and
High-yield junk bonds pay better interest rates than traditional investment-grade bonds because they carry a greater risk of default. Diversifying junk bonds is a great way to mitigate this risk, and high-yield junk bond funds are perfect for this. Here are the best high-yield junk bond funds.
Despite their name, junk bonds aren’t entirely worthless. The term is used for bonds from issuers with less-than-stellar credit ratings. They involve a bit more risk than high-rated bonds but make up for it with higher interest rates. Learn about high-yield junk bonds and whether to invest in them.
Although useful for their relative safety and the stable income they provide, bonds provide limited returns, sometimes failing even to keep pace with inflation. Other alternatives offer a different mix of safety, income, and returns. Learn about the best bond alternatives to consider investing in.
Inflation erodes the purchasing power of money and poses a big risk to holders of traditional bonds that pay a fixed rate of interest. Inflation-protected bonds are fixed-income instruments designed to adjust when inflation strikes. Learn what inflation-protected bonds are and how they work.
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