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Check Bonds’ Credit Worthiness

Radio Transcript, 60 seconds, for use during week of October 29.

This is an Invest Wisely minute brought to you by Iowa State University Extension.

When buying bonds, be sure to check the credit worthiness of the bond issuer.  This is rated by commercial firms such as Moody’s and Standard and Poor’s.

The lower the bond rating, the higher the risk.  Investing in lower-rated junk bonds is risky.  Stick to higher rated investment grade bonds.

Government bonds have no default risk.  Their rates set the floor on rates for all other bonds.

Invest Wisely comes from Iowa State University Extension through a grant from the Investor Protection Trust providing investor education on the web at investorprotection.org.

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Updated November 1, 2007