Understanding Bonds

Learn about investing with bonds
Rating: 4.2 out of 5 (364 ratings)
8,588 students
Understanding Bonds
Rating: 4.2 out of 5 (364 ratings)
8,586 students
understand bond basics
know about different types of bonds
know the benefits and risks on bond investing
interpret bond credit ratings
understand bond price, yield spreads
understand bond funds

Requirements

  • Internet access
  • desktop or laptop

Description

Learn about different types of bonds, the benefits and risks of bond investing. Understand the relationship between bond prices, interest rates and yields.

  • Bond Basics - learn about what a bond is
  • Types of Bonds - learn about the different types of bonds. For example, Government Bonds, Singapore Government Securities, Singapore Savings Bonds, Corporate Bonds, Unsecured Bonds, Callable Bonds, Puttable Bonds, Convertible Bonds, Perpetual Securities.
  • Benefits & Risks - learn about the benefits and risks of bond investing. Bond Benefits includes Security, Capital Preservation, Capital Gain, Generating Passive Income, Diversification. Bond Risks include Interest Rate Risk and Capital Loss, Default (Credit) Risk, Reinvestment Risk, Currency Risk, Issue Specific Risk, Inflation Risk, Liquidity Risk
  • Credit Ratings - learn about bond credit ratings. Credit ratings provide an avenue for the assessment of the credit worthiness of a bond issuer with respect to its bond obligations. A good credit rating can help to fetch a lower rate of interest for the issuer.
  • Price, Yield Spread - learn about bond prices and yield spreads. Bond prices and interest rates move inversely. Factors that affect interest rates will affect the price of bonds. Interest rates are in turn determined by macroeconomic factors, such as the state of the economy, inflation, unemployment, international trade, and government fiscal and monetary policies. Yield spread is the difference between yields of two investments.
  • Bond Funds - learn about the various bond funds available. Government Bonds, Investment Grade bonds and High Yield bonds represent increasing exposure to credit risk. The fund can also be a mix of various types of bonds. If so, the fund’s fact sheet will state clearly what these types are and what the fund’s investment objective is. Country-specific bond funds may not only invest in local currency bonds, but also in foreign currency bonds. This is also true of global bond funds. Do note that such funds may be denominated in USD or currencies unrelated to those of the bonds they are invested in. Emerging Market Bonds usually involves high risk, high yield debt.

Some of the concepts and examples in this module are applicable only in Singapore.

Who this course is for:

  • this course is best suited for those who are interested in bond investing, especially those in Singapore.

Course content

3 sections • 17 lectures • 59m total length
  • Understanding Bonds - Intro Video
    01:35
  • About the Institute for Financial Literacy
    03:46
  • Introduction - What is a Bond?
    03:13
  • Bond Basics - PDF
    2 pages

Instructors

Unbiased Financial Education Courses
Institute for Financial Literacy
  • 4.2 Instructor Rating
  • 9,572 Reviews
  • 120,659 Students
  • 26 Courses

  The Institute for Financial Literacy is a collaboration between MoneySense and Singapore Polytechnic Enterprise. 

    Our financial education courses cover basic money management, financial planning and investment know-how. 

Financial Literacy Trainer
Peggy Chan
  • 4.2 Instructor Rating
  • 6,258 Reviews
  • 87,549 Students
  • 14 Courses

Peggy Chan, Financial Literacy Trainer, Institute for Financial Literacy

MSc, CFP

Peggy has 8 years of experience in the financial services industry, helping clients understand their financial needs, objectives and risk tolerance as well as reviewing company policies and procedures to ensure compliance. She was also an adjunct lecturer with a Polytechnic, teaching insurance and retirement planning subjects.

Prior to joining the financial services sector, Peggy was working in the information technology sector for 13 years, first in a government agency and subsequently served as a Senior Systems Analyst in an international bank.

She is a Certified Financial Planner, which is a professional certification specific to retirement planning and wealth accumulation in addition to overall financial planning.

Peggy has a Masters of Science, majoring in Network Management. She also holds other industry certification in M5, M8, M8A, M9 and HI.