Course 1810 lessons

Bonds and fixed income

What happens when you lend money to a government or company instead of buying a piece of it: coupon rates, yields, credit risk, how interest rates move bond prices, and how Philippine retail bonds and treasury bills fit into a real portfolio.

What a bond actually is

A bond is a loan. When you buy one, you're not buying a piece of a company or a government the way you would with a stock, you're lending them money directly, and they owe you for it. The organization that issues the bond, called the issuer, could be the Philippine government, a company like a bank or a conglomerate, or even a local government unit.