Types of Bonds

Treasuries

The U.S. government can raise money through taxes or by issuing bonds. Unlike any other debt instrument, U.S. Treasury bonds are considered free of credit risk because they are backed by the full faith and credit of the United States government.

Municipal Bonds

The U.S. government can raise money through taxes or by issuing bonds. Unlike any other debt instrument, U.S. Treasury bonds are considered free of credit risk because they are backed by the full faith and credit of the United States government.

Municipal bonds, or munis, are bonds issued by states, cities and counties to fund new or ongoing projects or improvements.

Agency Bonds

Agency bond is an umbrella term that refers to a group of different types of securities. One example is Ginnie Mae, which does not issue its own securities, but rather guarantees the mortgage-backed securities issued by the FHA or the Department of Veteran Affairs (VA).

Corporate Bonds

Corporations issue bonds to raise money to expand their businesses, cover operating costs, or finance corporate takeovers or reorganizations.

Zero-Coupon Bonds

Zero-coupon bonds are a type of discount bond. If you're interested in more information on discount bonds, learn how zero-coupon bonds work and how they are taxed.

New Issue Securities

New issue securities are sold directly from the issuer to the investor in the primary market. Learn more about what makes new issue stocks and bonds a unique investment choice!