The risks of interest-bearing investments, for example:
- inflation,
- interest rate cycles and
- dubious borrowers with poor credit ratings.
The advantages of investing in this asset class, particularly
- the interest income on which you can rely.
Some of the main interest-bearing investments in the market. These include:
- cash,
- money market funds,
- bonds,
- participation mortgage bonds and
- voluntary purchased term annuities.
You have to know about two new market places other than the stock market:
- the money market, where short-term interest-bearing secuities are traded, and
- the bond market, where longer-term interest-bearing securites such as bonds are traded.
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