Markets Explained

Types of Bonds

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After you decide to invest in bonds, you then need to decide what kinds of bond investments are right for you. Most people don’t realize it, but the bond market offers investors a lot more choices than the stock market.

Depending on your goals, your tax situation and your risk tolerance, you can choose from municipal, government, corporate, mortgage-backed or asset-backed securities and international bonds. Within each broad bond market sector you will find securities with different issuers, credit ratings, coupon rates, maturities, yields and other features. Each one offers its own balance of risk and reward.

Use this section to clarify the differences among your bond investment alternatives:

  • Learn the ins and outs of different types of bonds in the comprehensive “Investor’s Guides” to various types of bonds
  • Supplement your knowledge with product-focused industry research and articles
  • Find out more about bond funds

The bond market responds to changing investor needs with frequent innovations. Check back here periodically to find out what’s new in bond investments.