Types of Bonds and Their Features

In this section

• Government Bonds
  Review Treasuries, agency bonds, and municipal bonds across the main government-backed bond categories.
  • U.S. Treasury Securities
    Understand the main U.S. Treasury instruments and how maturity and inflation protection affect their use.
    • Treasury Bills (T-Bills)
      Review short-term Treasury bills, their discount pricing, and their role in cash management and yield benchmarks.
    • Treasury Notes (T-Notes)
      Understand Treasury notes as medium-term government securities used across the benchmark yield curve.
    • Treasury Bonds (T-Bonds)
      Review long-term Treasury bonds and how maturity extends duration and interest rate sensitivity.
    • Treasury Inflation-Protected Securities (TIPS)
      Learn how TIPS adjust principal for inflation and help investors manage purchasing-power risk.
  • Government Agency Bonds
    Compare federal agency securities and GSE debt, including the differences in guarantees and credit perception.
    • Federal Agency Securities
      Understand bonds issued by federal agencies and the role of explicit government backing in fixed income analysis.
    • Government-Sponsored Enterprises (GSEs)
      Review GSE debt, implicit support expectations, and the risks that distinguish it from Treasuries.
  • Municipal Bonds
    Study municipal bonds, their public-purpose funding role, and the main structures used in the muni market.
    • General Obligation Bonds
      Understand general obligation bonds, their tax-backed security, and their place in municipal credit analysis.
    • Revenue Bonds
      Review revenue bonds and how project cash flows, not taxing power, support repayment.
    • Tax Treatment of Municipal Bonds
      Learn how tax-exempt income and taxable-equivalent yield affect municipal bond evaluation.
• Corporate Bonds
  Compare major corporate bond structures and the provisions that change issuer flexibility and investor risk.
  • Investment-Grade Bonds
    Review investment-grade corporate bonds and the credit standards that distinguish them from speculative debt.
  • High-Yield Bonds
    Understand speculative-grade bonds, their higher yields, and the added credit and liquidity risks they carry.
  • Convertible Bonds
    See how convertible bonds combine fixed income features with the option to participate in equity upside.
  • Callable and Putable Bonds
    Compare issuer call provisions and investor put rights and how they affect bond valuation.
  • Sinking Fund Provisions
    Review sinking fund structures and how scheduled retirement provisions change reinvestment and credit dynamics.
• International Bonds
  Study foreign, eurobond, emerging market, and global bond structures in cross-border fixed income markets.
  • Foreign Bonds and Eurobonds
    Understand the difference between foreign bonds and eurobonds and how issuance venue affects structure and risk.
  • Emerging Market Debt
    Review emerging market debt and the added sovereign, currency, liquidity, and political risks it can introduce.
  • Global Bonds
    See how global bonds are issued across multiple markets and why they matter for international funding and diversification.
• Asset-Backed and Mortgage-Backed Securities
  Review securitized bond structures backed by mortgages, loans, and other asset pools.
  • Mortgage-Backed Securities (MBS)
    Understand mortgage-backed securities and the cash flow, prepayment, and extension risks they introduce.
  • Asset-Backed Securities (ABS)
    Review ABS structures backed by receivables and consumer loans and the risks that affect tranche performance.
  • Collateralized Debt Obligations (CDOs)
    Learn how CDOs repackage credit exposure and why tranche structure matters in risk analysis.
• Structured Notes and Specialized Bonds
  Explore specialized bond instruments that alter coupon behavior, inflation exposure, or catastrophe risk.
  • Floating Rate Notes (FRNs)
    Review floating rate notes and how reset mechanisms change duration and income behavior.
  • Inverse Floaters
    Understand inverse floaters and why their cash flows become more volatile as rates change.
  • Inflation-Linked Bonds
    Compare inflation-linked bond structures and how they help investors manage real return risk.
  • Catastrophe Bonds
    Review catastrophe bonds and how insurance-linked risk transfer differs from traditional fixed income credit exposure.