Mr. Bond Opened Up About His Role in Investing
#WiseUp
2 mins read

Mr. Bond Opened Up About His Role in Investing

Mr. Bond is known for being complicated and hard to get to know. So, we decided to ask him a few questions to help you understand him better.

 

Mr. Bond, you live an elusive life. So tell us, how do you really work?

When governments or big companies need help raising money, I’m their guy. Let me explain. When you buy me (in other words, invest in me), your money is loaned to the institution that issued the bond.

 

Why should investors like you?

If you hang with me, every quarter you're likely to meet my friend Interest. You'll also see him again when the bond-term is over, which is when you get your money back. That’s why when it comes to investing, I’m a pretty safe bet if the institution you are loaning to is large and established.

 

Favorite holiday?

Easy, my favorite holiday is Maturity Date. Although it’s not the most well known, it’s when bondholders get paid the value of the bond they're holding. Who doesn’t love pay-day!

 

Fun fact?

My close friends refer to me as “fixed-income security.” So don’t let anyone wow you with fancy names for me.

 

 

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This material is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. The information and opinions contained in this post are derived from proprietary and nonproprietary sources deemed by Finhabits to be reliable, are not necessarily all-inclusive and are not guaranteed as to accuracy. As such, no warranty of accuracy or reliability is given and no responsibility arising in any other way for errors and omissions (including responsibility to any person by reason of negligence) is accepted by Finhabits, its officers, employees or agents. This post may contain “forward-looking” information that is not purely historical in nature. Such information may include, among other things, projections and forecasts. There is no guarantee that any forecasts made will come to pass. Reliance upon information in this post is at the sole discretion of the reader.

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