Tag: Bonds

  • What Is The Benefit Of Investing In Secured Bonds

    What Is The Benefit Of Investing In Secured Bonds

    Introduction Before we understand what is the benefit of investing in secured bonds, let’s take a quick minute to understand what are bonds / debt instruments. When a company wants to raise capital to expand its business, it has majorly two options: When the company takes loans as a means to raise capital from the…

  • How Do Market Linked Debentures (MLDs) Make Returns

    How Do Market Linked Debentures (MLDs) Make Returns

    What are Market Linked Debentures¬† Market-linked debentures, popularly called MLDs, are debt investment instruments. The returns on the investment are dependent on the performance of a specific market index rather than being fixed. These structured instruments typically only have one pay-out at maturity and no other monthly payments. This is because the returns earned from…

  • 5 Reasons Why Bonds Are Better Investment Than Debentures

    5 Reasons Why Bonds Are Better Investment Than Debentures

    Introduction There are different ways on how the government and corporate raise funds to run their business. Out of the all, bonds and debentures are a popular means for raising funds. Also read: What Is The Advantage Of Investing In A Zero Coupon Bond What are bonds A bond is a contract between the investor…

  • How Do Mortgage Backed Securities Make Money

    How Do Mortgage Backed Securities Make Money

    Introduction to Mortgage Backed Securities Mortgage Backed Securities (MBS) are bonds issued by banks and financial institutions to individual investors as a means of liquidating assets that have been frozen with them in the form of loans. When you want to buy a house, you go to a bank and ask for a loan. The…