AIE 151: Our Financial System Runs on Bonds

<p>Bonds are like IOU’s issued by governments and companies. They usually come in denominations of $1,000 with different interest rates (coupons). As yields (rates) on bonds increase, existing bond prices decrease. David (Uncommon Yield) breaks all thismdown and more for Lauren. Then, they get into the importance of the 2-year and 10-year treasury rates, and what it means when the 2-year is higher than the 10-year (when the yield curve inverts). Why do bonds matter? They underpin the whole financial system. And David tells Lauren what is going on in the current market right now, and it’s actually pretty shocking. If you haven’t heard much about bonds on social media, it’s because they’re not talked about enough given how important they are to the economy. This is a great place to dip your toe in.</p> <p><br></p> <p>If you liked this episode, you may also like my past interview with David about credit cards for episode 102. <strong>About David:</strong></p> <p>David a.k.a. UncommonYield, a financial educator and teacher at Cash Flow University. He takes a unique approach to personal finance that teaches you how to get the most out of every dollar. UY is married with 4 young kids and is Midwest born and raised. Find him @UncommonYield on Twitter and Instagram.</p> <p><br></p> <p><strong>Connect with David:</strong></p> <p><a href="https://twitter.com/UncommonYield" target="_blank" rel="noopener noreferer">https://twitter.com/UncommonYield</a></p> <p><br></p> <p><strong>Connect with Lauren:</strong></p> <p><a href="https://podcasters.spotify.com/pod/dashboard/episode/%E2%81%A0https://twitter.com/AdultingIsEasy%E2%81%A0">https://twitter.com/AdultingIsEasy⁠⁠</a></p> <p><a href="https://podcasters.spotify.com/pod/dashboard/episode/%E2%81%A0https://www.instagram.com/adultingiseasyreal/%E2%81%A0">⁠⁠https://www.instagram.com/adultingiseasyreal/⁠⁠</a><a href="https://podcasters.spotify.com/pod/dashboard/episode/%E2%81%A0https://www.housemoneymedia.com/">⁠⁠⁠</a></p> <p><a href="https://podcasters.spotify.com/pod/dashboard