Bonds are generally considered a defensive investment and a safe haven when markets trend down or become volatile. Yet, it’s important to remember that bonds aren’t immune to economic forces. Specifically, inflation can decimate the returns bonds offer through coupon payments. Investors looking at diversifying into bonds need to be aware of bonds’ inflation risk and strategies for offsetting it. Inflation risk can be a tricky concept to understand because it’s impacted by two diverse factors: bond interest rates and current inflation rates. Depending on the bond you hold and the macroeconomic forces affecting inflation, your bond portfolio could face more or less inflation risk than someone else’s. Here’s a…

Bonds are generally considered a defensive investment and a safe haven when markets trend down or become volatile. Yet, it’s important to remember that bonds aren’t immune to economic forces. Specifically, inflation can decimate the returns bonds offer through coupon payments. Investors looking at diversifying into bonds need to be aware of bonds’ inflation risk and strategies for offsetting it. Inflation risk can be a tricky concept to understand because it’s impacted by two diverse factors: bond interest rates and current inflation rates. Depending on the bond you hold and the macroeconomic forces affecting inflation, your bond portfolio could face more or less inflation risk than someone else’s. Here’s a…

After settling to historic lows, bond yields are coming back up. Rising interest rates are also an opportunity for retirees and passive income investors to begin exploring the best performing bond funds as a way to preserve their wealth. But, like any type of ETF or mutual fund, bond funds require a little bit of investigation before you make an investment. Namely, you want to make sure the fund is structured to meet your expectations. Bond funds offer plenty of stability and the appeal of stable income, but not all bond funds are the same. They vary greatly depending on the type of bonds the fund holds, its objectives and…

After settling to historic lows, bond yields are coming back up. Rising interest rates are also an opportunity for retirees and passive income investors to begin exploring the best performing bond funds as a way to preserve their wealth. But, like any type of ETF or mutual fund, bond funds require a little bit of investigation before you make an investment. Namely, you want to make sure the fund is structured to meet your expectations. Bond funds offer plenty of stability and the appeal of stable income, but not all bond funds are the same. They vary greatly depending on the type of bonds the fund holds, its objectives and…