O'Reilly logo

Portfolio Representations by Jem Tugwell

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

CHAPTER 4. Fixed Income

4.1 Bonds

4.1.1 Introduction

Bonds are financial instruments that allow an issuer, which can be a government, city, or company, to borrow money. The debt is packaged as a security and initially sold into the new issues market. The bonds can then be traded in a secondary market. The buyer of the bond is effectively lending money to the issuer.

In a simple or vanilla bond, the issuer will periodically pay a fixed amount of interest, hence the term fixed income, for a fixed period of time when the principal is then returned. In the bond markets there are many variations and complexities of bond structure but there is always a valid economic justification from the bond issuer’s perspective. If this reason is understood, ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required