30 years: Risk management & derivatives trading
Lindsey begins his series by explaining what a bond is, why people invest in them and the factors you should consider when investing.
Lindsey begins his series by explaining what a bond is, why people invest in them and the factors you should consider when investing.
13 mins 29 secs
Rather than borrowing from a bank, large companies, banks and sovereign governments borrow money in the capital markets by issuing bonds. A bond is a security representing debt of an issuer. Bond buyers are the lenders; bond issuers owe lenders money and pay periodic interest to them. Interest payments a.k.a. coupons, are expressed as a percentage of the money borrowed. Key determinants of bond value are coupon, price and yield.
Key learning objectives:
Describe a Bond
Learn the importance of investing in Bonds
Learn about bond prices, cashflows and values
Explain yields, yield-to-maturity and the yield curve
09:04
06:10
12:17
11:24