The term bond has in the past been the generic term for fixed interest stocks with security (the borrower is ‘bound’ to repay capital). Gilts are therefore bonds. However, in recent times the term ‘bond’ has also been used in the name of some equity based investments, for example investment bonds issued by insurance companies.
They have more predictable characteristics — owing to their fixed maturity (principal repayment date) and coupon (interest rate). But those predictions are fairly technical and sometimes even difficult to follow for the beginner.
Nowhere else in the investing world can the interested investor get more helpful information than that available from the various bond rating agencies
Investors have too much to think about. Where are interest rates headed? Will the stock market rise or fall? Can investing in mutual funds save money and free up time? And, that eternal nagging question: Where to invest?
