Bonds

Bonds are debt securities that borrowers issue to raise money from those willing to invest in the bond for a certain amount of time. When you buy a bond you are lending that money to the issuer, and in return the issuer promises to pay you back with a specific amount of interest on the payback. That’s how bonds give you return is on the interest paid by the borrower. There is low risk involved in bonds, with also a low yield on your investment. Value View does not usually recommend this in today’s current climate of high inflation, except as a portfolio diversification tool. In times of inflation, bonds not only fail to keep up, but also suffer from higher volatility.