BOND MARKETS AND FIXED INCOME SECURITIES (CASE)

Bonds are considered as viable alternative investments in place of equities because of their low risk and certainty of returns. Those investors who are relatively more risk averse tend to invest into bonds because of their low risk profile as compared to equities. There are however, different types of bonds which carry different risks and investors invest into them according to their own risk preferences. Treasury Bonds are considered as of lowest risk because they are backed up by the government whereas junk bonds are considered as of highest risk because of the overall credit ratings of the issuers of such junk bonds.