Summary of Bond Indicators

There are a variety of indicators that help investors track a bond’s value and market performance. Bond indexes and newspaper quotes provide information on market changes, while credit ratings indicate the credit risk a bond issue entails. Generally, a bond’s price on the secondary market depends on how its coupon rate compares with current interest rates in the economy as a whole.

By following the bond indicators and economic trends, a savvy investor is better able to make educated guesses as to how his or her bonds will perform within his or her portfolio. This is essential to good investment planning and tracking.