An Interactive Guide to the U.S. Bond Market
The U.S. bond market is one of the largest and most diverse in the world. This interactive application breaks down its three primary segments: Treasury, Municipal, and Corporate bonds. Explore their characteristics, compare their features, and understand their role in finance.
U.S. Bond Market Composition (by estimated value)
U.S. Treasury Securities
Backed by the full faith and credit of the U.S. government, these are considered the safest investments globally. This section allows you to explore the different types of Treasury securities and their typical investment horizons.
Treasury Bills (T-Bills)
Short-term debt instruments with maturities of one year or less. They do not pay periodic interest but are issued at a discount to their face value. The investor's return is the difference between the purchase price and the redemption value at maturity.
Typical Maturity Periods
Municipal Bonds ("Munis")
Issued by state and local governments to fund public projects. Their primary feature is the tax advantage: interest is often exempt from federal, and sometimes state and local, taxes. Use the tool below to see how different bond types compare on key attributes.
Corporate Bonds
Issued by companies to raise capital. Their risk and return are primarily determined by the issuer's financial health, reflected in its credit rating. Explore the difference between investment-grade and high-yield bonds below.
Investment-Grade Bonds
Issued by financially stable companies with a high credit rating (Baa3/BBB- or higher). These bonds are considered to have a low risk of default and are a staple for conservative income-focused investors.
Side-by-Side Comparison
Select any two bond types from the dropdown menus below to compare their key features directly. This tool is designed to help you synthesize the information and understand the trade-offs between different fixed-income investments.
| Feature | Bond 1 | Bond 2 |
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