Bonds & Fixed Income

Essentials of Fixed Income Investment with Lumentrades

trade bonds online

Fixed income refers to any type of investment under which the borrower or issuer is obliged to make payments of a fixed amount on a fixed schedule. For example, the borrower may have to pay interest at a fixed rate once a year, and to repay the principal amount on maturity. Fixed-income securities can be contrasted with equity securities – often referred to as stocks and shares – that create no obligation to pay dividends or any other form of income.

Essentials of Bond Investments with Lumentrades

A bond is a food fixed income security, it is a debt instrument for the purpose of raising capital. where the investor lends a company money for a period of time, at a variable fixed interest rate. If a company issues a bond, the money they receive in return is a loan, and must be repaid over time. Just like the mortgage on a home or a credit card payment, the repayment of the loan also entails periodic interest to be paid to the lenders.

Benefits of Bonds & Fixed Income Investment with Lumentrades

buy a bond
  • Superb offering Our platform has over 600 bonds within our coverage, our tools enable for a smoother and better investment experience and also our brokers research the best companies that would suit your specifications.
  • Predictable returns - If history is any indication, stocks will outperform bonds in the long run. However, bonds outperform stocks at certain times in the economic cycle. It’s not unusual for stocks to lose 10% or more in a year, so when bonds make up a portion of your portfolio, they can help smooth out the bumps when a recession comes along. Also, in certain life situations people may need security and predictability. Retirees, for instance, often rely on the predictable income generated by bonds. If your portfolio consisted solely of stocks, it would be quite disappointing to retire two years into a bear market. By owning bonds, retirees are able to predict with a greater degree of certainty how much income they’ll have in their later years. An investor who still has many years until retirement has plenty of time to make up for any losses from periods of decline in equities.