Course 107: Secured and Unsecured Bonds
Risk Tolerance
In this course
1 Introduction
2 Identifying Secured Bonds
3 Unsecured Bonds
4 Types of Unsecured Bonds
5 Risk Tolerance

Bonds are favored by investors seeking current income and safety of principal. Some of these investors are willing to take more investment risk to get higher returns than others. Depending upon your risk tolerance, you may choose unsecured bonds if they offer high current income. Conversely, you may not be able to take much risk with your income. In this case, you would look for bonds that are backed by more than the good faith and credit of the issuers while seeking higher returns.

As a bond investor, you should become familiar with the different ways in which bonds are secured. This will help you choose bond investments best suited to your investment objectives and risk tolerance.

Next: The Quiz >>

Print Lesson |Feedback | Digg! digg it
Learn how to invest like a pro with Morningstar’s Investment Workbooks (John Wiley & Sons, 2004, 2005), available at online bookstores.
Copyright 2015 Morningstar, Inc. All rights reserved. Please read our Privacy Policy.
If you have questions or comments please contact Morningstar.