What is a bond?

When you buy a bond, you're essentially lending the bond issuer (seller) money at a fixed interest rate. It's a straightforward way for companies, governments, or municipalities to generate financing for projects and innovations, so when they need money, they sell bonds to people like you. It's a good deal for both sides-sellers get the capital they need, and you get an investment that is typically more stable than stocks. Even better, since bonds are a debt the company owes you, its value isn't tied to the company's stock value.

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How does the bond market work?

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The bond market is a general term that describes the buying and selling of debt securities offered by federal and local governments or corporations. New bonds are issued on the primary market, while existing bonds are sold on the secondary market. Bonds are basically bought and sold the same way as stocks—by matching buyers with sellers. But unlike stocks, buyers and sellers trade with one another (known as over-the-counter) over the phone, email, or through a broker.

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How bonds can strengthen your investment portfolio

Preserve your wealth

While the price of fixed-income investments can fluctuate, you can rely on getting the full face value when your bond reaches maturity.

Diversify your portfolio

Diversifying your investments across asset classes can help make sure that you have less risk exposure for your overall portfolio.

Add to your income

Fixed-income investments can give you a steady stream of monthly, quarterly, or semi-annual income for extra funds now or in retirement.

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Ranking for Northwestern Mutual Investment Services LLC, Financial Advisor magazine and InvestmentNews, April 2021

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The number of people we're proud to call clients, and who put their trust in us.

164+ years strong through depressions, downturns, and pandemics

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Our financial advisors will set up your account and help you find the right bonds to take you where you want to go.

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