Why Buy Bonds at Buying

Why Buy Bonds. Think of a bond as a kind of loan. This offers predictability of both cash flow and return, something that other investments, such as stocks, cannot offer.

It is critical to note that banks can become. Bonds tend to offer a reliable cash flow, which makes them the good investment option for income investors. In 2020, the large commercial banks will still need to buy more treasury securities, which is why they have been buying long treasury bond contracts.

World War One Poster Liberty Bonds blot out the Hun

Government that is considered highly unlikely to default on i bond holders. Bonds are also a good place to keep an emergency fund if you don’t need immediate access (unless you experience a loss of income). Are you willing to pay for downside protection that used to pay you? This offers predictability of both cash flow and return, something that other investments, such as stocks, cannot offer.