Why Bonds Matter in Investing

Bonds matter because they do more than pay interest. They can provide predictable income, help reduce overall portfolio volatility, and act as a counterweight when stocks are under pressure. In this lesson, Professor Victor Zane explains what a bond is, why investors use fixed income, and how bonds fit into a broader investing plan.

You will learn the core reasons bonds belong in many portfolios, the basic tradeoffs between income and risk, and the key ideas that will help you evaluate bonds more confidently in later lessons.