What are Bonds? Governments and companies frequently need to raise finances in order to finance new investments and projects. Rather than taking a loan, they can issue bonds.

A bond is a debt investment where an investor loans money to a company or Government for a defined period of time for at an agreed interest rate

They are different from shares because they pay interest and do not provide a stake in the issuing organisation.

Because Bond markets are driven by economic performance and geopolitical risk, careful analysis and an understanding of the markets can help identify trading opportunities. If you think a Bond market will rise in value you can buy or go long on that market. If, however, you think the price of a market may fall, you can sell or short that market.