INVESTLB / TOPICS & PERSPECTIVES
Bond market
13 publications
INVESTLB
Why Diversification is Crucial in Investing
Diversification is a fundamental strategy for allocating capital across assets, sectors, regions, and currencies to minimize risks and stabilize returns. Historical data from Vanguard and BlackRock confirms that diversified portfolios reduce volatility by 30–50%, limiting maximum drawdowns to 20–30% versus 50–60% for concentrated ones. In the context of 2024–2025 sanctions, this approach gains critical importance,
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Coupon Bonds: Reliable Semi-Annual Income from the World's Largest Debt Market
Coupon bonds form the backbone of global fixed income investing. These traditional debt securities deliver predictable interest payments every 3–6 months alongside principal repayment at maturity, offering institutional-grade income streams for conservative portfolios worldwide. What Are Coupon Bonds? Coupon bonds pay investors periodic interest (the "coupon") based on a fixed or floating percentage of face
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Should stock trades be left for the weekend?
In the world of finance and investment, the question of whether stock trades should be left for the weekend is a hot topic for many traders and investors. In this article, we will look at various aspects of this topic and try to answer it. How exchanges function on weekends International financial markets are usually
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How to Analyze Corporate Debt Before Buying a Stock: Net Debt/EBITDA, Interest Coverage, Maturity Wall and Refinancing Risk
A practical guide to corporate debt analysis before buying a stock: total debt, net debt, Net Debt/EBITDA, interest coverage, debt maturity wall, refinancing risk, covenants, credit ratings, free cash flow and dividend safety.
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Corporate Bonds: 5–8% Yields from Blue-Chip Companies — The Income Step-Up from Treasuries
Corporate bonds offer investors premium yields over government securities with investment-grade protection. These company-issued debt instruments deliver reliable income streams for portfolios seeking higher returns without excessive equity risk. What Are Corporate Bonds? Corporate bonds represent loans to businesses issued to fund operations, acquisitions, expansions, and refinancing. Investors receive periodic interest payments (coupons) and principal
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Government Bonds: Risk-Free 4–6% Returns Backed by Sovereign Credit
Government bonds remain the bedrock of institutional portfolios worldwide. These sovereign debt securities offer principal protection with predictable income, serving as the ultimate safe haven during market turbulence while delivering competitive yields in stable environments. What Are Government Bonds? Government bonds are debt securities issued by national governments to finance budget deficits, infrastructure spending, and
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Municipal Bonds: Steady 3–5% Tax-Free Income Backed by Local Governments
Municipal bonds offer conservative investors reliable income with federal tax advantages. These debt securities issued by cities, counties, and states fund essential infrastructure while providing yields typically 3–5% tax-free — making them a cornerstone of balanced portfolios worldwide. What Are Municipal Bonds? Municipal bonds ("munis") are debt securities issued by state and local governments to
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ROIC vs WACC: How to Tell Whether a Company Creates Shareholder Value
A practical guide to ROIC and WACC: how to measure return on invested capital, cost of capital, economic profit, capital allocation quality and whether growth creates shareholder value.
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High-Yield Bonds: Unlock 6–12% Returns When Treasuries Pay 3–4%
High-yield bonds deliver superior income for investors willing to embrace calculated risk. Also known as junk bonds, they offer a compelling balance of yield, diversification, and moderate volatility – making them a staple in professional portfolios worldwide. What Are High-Yield Bonds? High-yield bonds are corporate debt securities rated below investment grade (BB+/Ba1 or lower by
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Low-rated bonds: what an investor needs to know
A bond is a debt security that requires repayment of funds within a set period of time, and until then involves coupon payments. The main characteristics of bonds are contained in the prospectus, a special document that is developed by a company before offering its bonds to investors. An investor can find out from the