Bonds - Corporate Bonds and Municipal Bonds

At Burr Capital Advisors, we are here to help you make educated decisions when it comes to investing your money. There are a variety of investment strategies you can utilize, and we are here to guide you through the process to help you achieve your financial goals. One investment strategy you can look into is the buying and selling of different kinds of bonds. There are many benefits to this tactic, including: 

1. They Provide a Predictable Income - Bonds allow you to know exactly how much your returns will be due to their fixed rate of interest.  
2. They Allow You To Preserve Capital While Investing - If held until they reach maturity, bondholders get back the entire principal. 
3. They Have A Lower Risk Than Stocks - In the event of a liquidation, bondholders are generally paid first over shareholders. 
4.  They Are Less Volatile  - Generally speaking, bonds are more stable compared to stocks, resulting in bonds being less volatile and unpredictable.
   

Simply put, bonds are an asset class where an investor will lend money for a set period of time. Bonds are meant to be paid back in full, and more often than not include an interest rate for the duration of the loan. They are essential in a balanced portfolio because they help to balance out risk over time. For instance, if there is a market crash or storm, bonds can help soften the impact of that plummet. 

There are a variety of bonds to invest in, and we at Burr Capital Advisors are here to provide some insight on the different kinds of bonds, and which ones will benefit your portfolio the most. The two common types of bonds we work with are corporate bonds and municipal bonds. 

• Corporate Bonds - Generally speaking, corporate bonds are debt securities that are issued by both public and private corporations. In fact, corporate bonds make up one of the largest components of the United States bond market. They tend to carry a higher level of risk than government bonds, but they usually are associated with higher potential yields. 
• Municipal Bonds - Municipal bonds are issued by state and local governments to fund a variety of public construction projects, including highways, housing, sewer systems, schools, and much more. More often than not, these bonds tend to be exempt from federal income tax and are a good way to preserve your capital while generating interest. 

A balanced portfolio consists of a combination of financial investment strategies, and our financial advisors at Burr Capital Advisors are here to help you determine the best plan of action for your portfolio. To learn more about the different types of bonds, their risks and benefits, and more, contact our team today! We are happy to answer any questions you may have. 

At Burr Capital Advisors, our main priority is to educate our clients about their financial investment options and create a customized plan to set their portfolio up for success. For more information about investing in bonds, get in touch with us today.

Bonds are subject to market and interest rate risk if sold prior to maturity. Bond values will decline as interest rates rise and bonds are subject to availability and change in price.

The market value of corporate bonds will fluctuate, and if the bond is sold prior to maturity, the investor's yield may differ from the advertised yield. 

Bond yields are subject to change. Certain call or special redemption features may exist which could impact yield.

Municipal bonds are subject to availability and change in price. They are subject to maket and interest rate risk if sold prior to maturity. Bond values will decline as interest rates rise. Interest income may be subject to the alternative minimum task. Municipal bonds are federally tax-free but other state and local taxes may apply. If sold prior to maturity, capital gains tax could apply.