Investment Insights Fixed income

How each bond type can play a role in your overall investing plan.
CIBC Investor’s Edge Jun. 19, 2025 7-minute read
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What are government bonds?

What are corporate bonds?

Government versus corporate bonds: Pros and cons

  Government bonds Corporate bonds
Risk level Very low, especially federal Higher, varies by issuer
Return (yield) Lower Higher
Creditworthiness Backed by government Depends on company health
Tax treatment Fully taxable income Same
Liquidity Very liquid, especially federal Can vary depending on the bond

How bonds can respond to the economic cycle

How to invest in government or corporate bonds

Which bond strategy fits your goals?

Key takeaways

Knowledge is your most valuable asset

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