Investment Insights Fixed income

In this article, you’ll learn the basics of investing in bonds, along with the benefits and risks
CIBC Investor’s Edge May. 30, 2025 7-minute read
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A bond is a type of fixed income investment. But what is a fixed income investment?

What is a bond?

Types of bonds

What are the benefits of investing in bonds?

Steady income

Lower volatility versus stocks

Stability in uncertain times

What are the risks of investing in bonds?

Rising interest rates

Equation explaining $5 divided by $100 equals a 5% yield.

Equation explaining $5 plus $0.94 in parentheses divided by $99.06 equals a 6% yield.

Inflation

Credit rating downgrades

Bond default

Should you buy individual bonds, bond mutual funds or ETFs?

Which style of bond fund or ETF should you select?

Knowledge is your most valuable asset

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