Bonds
Debt securities — loans made to governments or companies that pay periodic interest and return the principal at maturity.
A bond is a debt security in which the issuer (a government, municipality, or corporation) borrows money from the bondholder, agreeing to pay periodic interest payments (coupons) and return the original principal at a specified maturity date.
Government bonds (US Treasuries, UK gilts, German bunds) are typically considered the safest investments in an economy. Corporate bonds offer higher yields but carry credit risk from the issuer's potential default.
Bond prices move inversely to interest rates: when rates rise, existing bonds with lower coupons become less attractive and fall in price. For investors, bonds typically provide stability, income, and diversification within a portfolio that also includes stocks.