Top 6 Uses For Bonds

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Individuals and institutions can use bonds in many ways: from the most basic, such as for preserving principal or saving and maximizing income, to more advanced uses, like managing interest-rate risk and diversifying a portfolio.

Bonds can also be an afterthought, especially during flight-to-quality events, when investors flock to the safest bonds they can find to weather financial storms. In fact, bonds are much more complex and versatile, and can provide investors with a variety of options. (To learn more, read our Bond Basics Tutorial.)

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