Finance Wanted.

By Pauline Go

Before investing in the bond market, one needs to know the different kinds of bond investments. Depending on the issuers, there are a variety of bonds available for investment. Each one of them has its own sets of risks and rewards.

Listed below are some important types of bonds available in the US bond market.

Municipal Bonds:

These are the securities that are issued by states, cities, counties and other government entities. The primary objective of these bonds is to use the funds for development of basic public infrastructure in the region including building schools, highways, hospitals and sewer systems. In case of municipal bonds, those issued by the federal and state governments are profitable.

US Treasury Securities:

These bonds are issued by the US federal government. There are three different types of securities issued by the US Treasury. These are bills, notes and bonds. Each one of these differs in terms of maturity date. The US Treasury Securities market is the largest and the most liquid market in the world and investments in this market are considered to be the safest.

Corporate Debt Securities:

These are the debt obligations issued by corporations for the purpose of generating capital and operating cash flow. These corporations can be either public or private. The funds generated by selling bonds are used by companies to build infrastructure, manufacturing facilities or even purchase of equipment.

Mortgage-backed, Asset-backed Securities (MBS/ABS):

These securities are issued by financial institutions in order to finance the borrower's purchase of home or any other real estate property. When somebody invests in MBS/ABS, he/she is actually purchasing an interest in a pool of mortgage, credit card or auto loans.

About Author:

Pauline Go is a professional writer for many website. She also writes great articles like How To Make Money In Annuities, Bond Markets And Oil Prices, Psp Advantages Of Setting Up A Wholly Owned Subsidiary