Bonds are loans investors make to issuers– corporations, governments, municipalities or other entities– so that those issuers can fund or expand operations. The issuer gets the cash it needs, while the lender earns interest for the term of the loan.
Bonds can be used as a "core" investment to build the foundation of a balanced portfolio. They offer a wide range of maturities, varying interest payment terms and different credit quality ratings to fit most portfolio needs. Bonds and other fixed-income instruments may also provide a good counterbalance when combined with equities because bonds typically fluctuate less than stocks.
We offer a wide range of fixed-income investment solutions reflecting the varied needs and preferences of our clients. Whether you are looking for income, growth or preservation of your invested principal, bonds may be an appropriate core holding for your portfolio.
Your Morgan Stanley Smith Barney Financial Advisor can work with you to determine which investments can help you meet your goals.