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How to Make Money from Bonds: Income, Yield & Capital Growth
Description
Rob Pizzichetta explains how bonds work and argues that government bonds are back as a real income asset after a decade-plus of low yields. He defines bonds as tradable loans, covering coupon, maturity, face value, and the differences between fixed and floating-rate bonds (plus inflation-linked variants). He outlines credit ratings and stresses that ratings address default risk, not price risk. He then details the key rule that prices and yields move inversely, introduces duration to show why longer bonds move more, and uses examples of how yield changes can drive gains or losses while holding to maturity returns face value. He reviews the 40-year bond bull market, the 2022 inflation/rate shock, and today’s drivers—deficits, reduced central bank buying, and competition for capital—before summarizing risks and portfolio uses of bonds.
00:00 Bonds Are Back
00:54 Bond Basics Explained
01:46 Fixed vs Floating Rates
03:00 Credit Ratings Matter
04:37 Yield Price Seesaw
05:21 Duration And Returns
06:31 40 Year Bond Bull Run
08:21 2022 Shock And Deficits
10:00 Why Yields Stay Higher
11:25 Risks And How To Manage
12:03 Why Own Bonds
12:38 Wrap Up And Disclaimer
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