Bonds are one of the oldest asset classes around. While they aren’t typically considered exciting, they have thousands of years’ worth of history, including numerous ups and downs.
Let’s put your historical bond knowledge to the test!
At the start of this year, the United States reaped the benefits of a 34-month economic expansion. Inflation and bond yields were both very low. However, over the course of seven months, this year saw the worst bond market loss in history.
A collateralized debt obligation (CDO) is a structured financial product that pools together cash flow-generating assets, then repackages them into tranches that can be sold to investors.
In this year, John Knowles Fitch introduced the ratings system that later became the basis for ratings throughout the industry.
HINT: Check out this Frank Talk!
Get more familiar with municipal bonds by reading our 5 Reasons Why Short-Term Munis Make Sense report!
Find out more about why short-term muni bonds should excite you in our CEO's Frank Talk blog.
Check out our 5 Reasons Why Short-Term Munis Make Sense report to understand the basics!