Like stocks, bonds are securities, they can be traded and are subject to price fluctuations. Nevertheless, they are very different and require a closer look before investing.
Bonds document that I, as an investor, have lent money to a state or a company, which I usually get back after a certain term with interest at a certain rate. In a podcast interview with Dietmar Mascher, the bond specialist at the Linz investment advisor WSS, Markus Weissörtel, explains what needs to be considered when investing, when it is cheap to invest in bonds and where the risk lies.
zero coupon bonds?
It’s not just about terms such as corporate bonds, yields, zero-coupon bonds or convertible bonds. Weissörtel also explains how interest rate developments and bond yields are related, why companies and states borrow money from investors worldwide, why Austria has borrowed money cheaply in the long term and what promises of high interest rates say about the creditworthiness of a debtor.
Certain investments in bonds are not intended for private use. But the intensive examination of the topic could bring investors quite nice interest income, says Weissörtel. But he also explains when investors can lose money.