Bond association

The last time story concerning “the interest” was done, but representation of financial products which designate the long-term interest as profit source is bond.Because the interest of bond usually is the fixed interest, the interest rate where the enterprise and the like which issues bond does not go bankrupt, when purchasing is stated in the face of bond is guaranteed to redemption day (expiration).

As for related link concerning >> bond this you can call bond a kind of loan bond originally, but the point where bond differs from the general loan bond largely is that is freely resale possible.As for this with the big charm which bond has, from deposits and savings it is the case that it can be called the financial products which a little hold flowability in level of interest rate of raising, and the safety which is not defeated to deposits and savings.

However, when selling with halfway, price is not the face amount and the amount which by his purchases, to the last it becomes “current price” of that point in time.In other words when it sells with halfway, if it has declined, it is the case that it is also the possibility of losing.

“Current price” of bond receives influence to the movement of the long-term interest largely.For example we will assume that “1,000,000 Yen in face value, per-annum rate ratio 4%, it had the bond of 2 years in redemption period”.1years later at、interest rates in the world4%from2%if you were down to、this bond101people that would be okay to buy ten thousand yen is what some people come out。than the face value because1also bought ten thousand yen higher、interest4if money is moraere million yen3jpy 10,000。because you can have the operation of high-yield financial instruments other than deposits。

that is、lead to lower interest rates is rising bond prices。in reverse、rise in interest rates will lead to a decline in bond prices。that is why、in the context of the current low interest rates, such as、purchase of the bond repayment period is long it should be avoided especially（the more long bond maturities typically、will increase when interest rates rise and fall）。

long-term interest rates and prices in the economy、exchange、or under the influence of rising interest rates overseas, such as、i fall or、in any 「movement of interest rates and bond prices is just the opposite」 that the、please remember all means。

of the bond thing to keep in mind when you buy with the intention to continue to have redemption 「rating」 is。at the beginning、「if you do not, such as bankruptcy or companies that have issued bonds」as i mentioned, and interest rate is guaranteed、for financial products that it can safely be held to maturity bonds、credit status of the issuer of the bond issue will be。if the long-term operation and to some extent, especially、also consider issues such as domestic financial institutions such as the recent collapse of、i think i want to buy the bonds to be held in peace will naturally。

that the redemption of the principal and interest payments are not made as promised「default」although referred to as、representation of the symbol alphabet the risk of default or the extent to which this is the rating。 institutions that most issuers of debt there are several at home and abroad、is famous S&P and moody’s is。is a private company headquartered in new york any、its rating has been all over the world-class。S&PinAAAfromDfor up to10stage（＋and?one may also use the symbol of）、in moody’sAaafromCfor up to9stage（after the alphabet1、2、3use with a number of）。highly evaluated as the most secure、S&PinAAA、in moody’sAaa（both tripleAit is said）is、safety will continue to lower or less in order。rough meaning of each symbol representing、chart is as follows:。

S&PinBBB、in moody’sBaathe bond rating of up to「investment-grade bond」this is called。between the two is、there is a big difference in potential default。

according to the statistics of the past、moody’s rating isAof the bonds5default rates within a year（the ratio of debt has become a default）is0.6％、Baais1.9％whereas the、Bain what11.1％、Bin26.5％and、each10the book１this、４the book１i have turned into more than two percentage。junk bonds i think that large numbers default risk is well understood。

low-rated bond yields higher, but of course、please do not forget that on the back of the high returns that are hidden always high-risk。to invest in junk bonds like this、investment trust without direct（is called the high yield bond fund, etc.）customers who take advantage of a good idea。

if you buy bonds directly to individual、if you canAit is recommended that you choose the one or more of the ratings。

＞＞if you want to know a little more about rating click here
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