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Bond Basics
 

Simple insight into the bond markets

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© 2023 by Winterflood Fixed Income

Interest rate risk

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Changes to interest rates will impact the price of your bond in the secondary market regardless of how the issuer performs.  

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As interest rates rise, bond prices fall. And as interest rates fall, bond prices increase.

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If you need or want to sell your bonds before maturity, you may find the price has been impacted by interest rate changes.

 

But remember, if you intend to hold the bond to maturity, the price in the secondary market is irrelevant. The secondary price is only relevant when you are buying or selling.

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