Abstracts » Business

The meaning of higher interest rates

Article Abstract:

US interest rates are rising, and it is unclear whether this means that investors should turn to bonds. Inflation may rise as a result of consumer demand, and bond yields are rising, which may slow stock price rises and consumer spending. There are a number of risks that could lead to recession, such as stock price falls, and risks arising from the financial deficit of the private sector. Bonds may have a useful function in terms of their insurance value, though investing in bonds may mean foregoing stock price rises.

United States economic conditions

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The unseen downside of stock market bonds

Article Abstract:

Reasons to be wary of stock market bonds are set out in detail. This type of bond has become more popular.

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The beauty of bonds

Article Abstract:

Investors can use corporate bond funds for cost-effective way to an investment that provides a steady income. Corporate bonds are not as risky as equities since there is less chance of a drop in their capital value, and they offere an intermediate level of risk, between equities and building society deposits. Corporate bond unit trusts have advantages such as providing access to foreign bonds. Prices for riskier bonds have risen and yields have dropped for riskier bonds since investors are less risk-averse than they were in 1998.

Investment Offices, Investment Companies, Open-End Investment Funds, Mutual funds

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