Bonds are some of the most necessary and fundamental vehicles in the financial sector.
債券是金融市場上最必要、最基礎的工具之一。
00:13
They allow towns, governments, companies, and other groups to get funding.
它們讓城鎮、政府、公司和其他團體能夠獲得資金。
00:17
Bonds are essentially just IOUs to the person giving you money, the lender, that says you're going to pay them back sometime in the future.
債券本質上就是一份借據，給予出借資金的人，承諾未來某個時候會償還。
00:29
They need it.
他們需要它。
00:31
What makes bonds different from loans is that they're a form of a security, in that you can buy a bond and start getting payments from the company that owes you.
債券與貸款不同之處在於，它們是一種證券形式，你可以購買債券並開始從欠你錢的公司獲得付款。
00:39
In essence, bonds are securitized loans.
總之，債券是證券化的貸款。
00:43
Bonds will typically include an end date in their terms when the entire amount of money is due back to the issuer, as well as terms for the interest payments to be made.
債券通常在其條款中包含一個到期日，屆時全部本金將歸還給發行人，以及關於應付利息的條款。
00:53
These are some core principles about bonds to remember if you're looking for a general overview.
如果您正在尋求一般性概述，這些是關於債券需要記住的一些核心原則。
01:02
They're corporate or government debt issued by an organization that are tradable assets in the form of securities.
它們是由組織發行的公司或政府債務，是以證券形式交易的資產。
01:08
Bonds are stable and referred to as a fixed income instrument.
債券是穩定的，並被稱為固定收益工具。
01:13
Their payments to holders don't fluctuate over time like the value of stocks or dividend payouts do.
它們對持有人的付款不會像股票價值或股息支付那樣隨時間波動。
01:19
Bond prices inversely correlate with interest rates, since a low interest rate usually means the borrower is trustworthy, more people will want to own that bond because there's little risk.
Conversely, high interest rates infer a risky borrower, which increases the chance that a bond will become worthless, thus making them cheaper.
相反地，較高的利率意味著借款人風險較高，這增加了債券變得一文不值的可能性，因此使其價格更便宜。
01:39
Bonds have dates at which point all of their value must be paid back.
債券有必須全額償還的日期。
01:43
This is called the maturity date, and beyond this point, the bond ceases to exist.
這稱為到期日，在此之後，債券即告終止。
01:52
Like we mentioned before, bonds are a way for companies or governments to raise money without giving up ownership of their company, which is what selling stock would do.
如前所述，債券是公司或政府籌集資金的一種方式，而無需放棄公司的所有權，這正是出售股票會做的事情。
02:04
If a government needed money for a project, they could issue bonds, which investors can buy and be guaranteed payments by the government.
如果政府需要資金來進行某個項目，他們可以發行債券，投資者可以購買這些債券並獲得政府的付款保證。
02:11
Government bonds are typically seen as safe because there's little chance the government won't pay back the funds.
政府債券通常被認為是安全的，因為政府不太可能不償還資金。
02:17
Companies, on the other hand, go bankrupt far more often, which would mean any bonds they issued would become worthless.
另一方面，公司破產的頻率要高得多，這意味著他們發行的任何債券都將變得一文不值。
02:25
If companies like Apple issued a bond, investors would eat it up because it would be seen as a very safe investment.
如果像蘋果這樣的公司發行債券，投資者會趨之若鶩，因為這會被視為一項非常安全的投資。
02:32
However, if a company like Blockbuster issued a bond to raise funds to open up a new store, it would be a pretty risky bond.
You might be asking yourself though, why wouldn't a company just go to a bank and get alone?
不過，你可能會問自己，為什麼公司不直接向銀行貸款呢？
02:45
Well, chances are the bank can't loan them the amount of money they need.
嗯，很有可能銀行無法貸出他們所需的金額。
02:51
In this case, companies have to turn to selling bonds to raise more capital.
在這種情況下，公司必須轉向出售債券來籌集更多資本。
02:55
Bonds provide a way for individual investors and funds to become lenders to massive companies.
債券為個人投資者和基金提供了成為大型公司貸方的途徑。
03:01
Think of it almost as a way of crowd funding corporate or government debt.
把它想像成一種企業或政府債務的群眾募資方式。
03:06
Finding one bank to give you $20 million might be hard, but finding 20,000 people to give you $1,000 would be a lot easier.
找到一家銀行給你 2000 萬美元可能很難，但找到 2 萬人給你 1000 美元會容易得多。
03:15
Now that we've covered why bonds exist and who issues them, let's talk about the specifics of how they work.
既然我們已經討論了債券為何存在以及誰發行它們，現在讓我們來談談它們的具體運作方式。
03:23
Bonds are a form of security, just like stocks, except bonds are generally more secure and offer payments over time and have an end date, which is how investors make their money, rather than buying the stock at one price and selling it higher later.
Bonds can be traded publicly or privately depending upon the way they're set up.
債券可以根據其設定方式進行公開或私人交易。
03:43
While you might buy a bond in a similar way as a stock, the difference is that bonds will come with terms and a plan for how you're going to get your money back.
雖然你購買債券的方式可能與購買股票類似，但不同之處在於債券會有條款和收回資金的計畫。
03:52
Bonds will include the terms of the loan, the interest payments to be made over time, and the maturity date, the time at which the entirety of the funds need to be paid back to investors.
債券將包含貸款條款、期間內應支付的利息以及到期日，即必須將全部資金償還給投資者的時間。
04:03
Bond holders make their money through interest payments the company makes to them, on top of paying back the original loan.
債券持有人透過公司支付的利息來賺取收益，此外還能收回原始貸款。
04:10
Interest payments are called the coupon and the interest rate is called the coupon rate.
利息支付稱為票息，利率稱為票面利率。
04:16
Most bonds are usually priced at either $100 or $1,000, called the par value.
大多數債券的價格通常為 100 美元或 1000 美元，稱為面值。
04:22
However, prices can fluctuate as people buy and sell them.
然而，隨著人們買賣債券，價格可能會波動。
04:25
If a company issues a bond when their financials look good, but then something like, say, a pandemic happens, and the company loses all their revenue sources, the bond would fall in value as people wouldn't want to own it.
However, since the bond was already sold to investors, in this case it would be the investors who lose their money, not the company who issued the bond.
然而，由於債券已經賣給了投資者，這種情況下將是投資者損失金錢，而不是發行債券的公司。
04:46
This is the same way stocks and other securities work, it's the risk of investing.
這與股票和其他證券的運作方式相同，這就是投資的風險。
04:51
The value of a bond depends on these main factors, credit quality of the issuer, date until maturity, and the coupon rate compared to the average interest rate of other bonds.
債券的價值取決於這些主要因素：發行人的信用品質、距到期日，以及票面利率與其他債券平均利率的比較。
05:02
You could buy a bond and never plan to hold it until maturity, rather you could buy a bond to just flip it a few weeks later if the price went up.
您可以購買債券，但從未打算持有至到期，而是為了在幾週後價格上漲時轉手賣出。
05:10
Conversely, you could also just buy bonds and let them sit, collecting interest over time and making your money back slowly.
相反地，您也可以只是購買債券並持有不動，隨著時間收取利息，慢慢收回您的資金。
05:17
Let's go through some more specific principles of bonds.
讓我們來看看一些更具體的債券原則。
05:23
Face value is the amount of money the bond is worth at maturity.
票面價值是債券在到期時的價值金額。
05:28
A face value of 1000 would mean that at the maturity date, the issuing company would have to pay you back the full $1,000.
票面價值為1,000美元意味著在到期日，發行公司必須償還您全部1,000美元。
05:36
The coupon rate is the interest rate which the issuer will pay.
票面利率是發行人將支付的利率。
05:40
A 5% rate on a $1,000 face value would mean that you'd get $50 per year in addition to the $1,000 at maturity.
1,000美元票面價值的5%利率意味著您每年將獲得50美元，此外還有到期時的1,000美元。
05:49
Coupon dates are the dates when interest payments will be made.
付息日是支付利息的日期。
05:53
The maturity date is the end date of the bond.
到期日是債券的結束日期。
05:56
And finally, the issue price is the initial price the issuer set to buy the bond from them.
最後，發行價格是發行人設定的初始價格，用於向他們購買債券。
06:05
The major determinants of quality of a bond are the credit quality of the company or government, like a corporate credit score, and the time to maturity.
債券品質的主要決定因素是公司或政府的信用品質（例如企業信用評分）以及距到期日。
06:14
If the issuer has bad credit, the risk of losing all of the bonds value is greater, making the interest rate be higher in order for investors to be willing to take the risk.
如果發行人信用不佳，損失債券全部價值的風險就越大，因此利率會更高，以便投資者願意承擔風險。
06:25
If the maturity date is further out, the interest rate will usually be higher too since it will take a longer time to get back the initial investment.
如果到期日更遠，利率通常也會更高，因為收回初始投資需要更長的時間。
06:33
Companies get credit ratings from credit ratings agencies like Moody's and Standards and Pores.
Side note, these companies were also one of the main reasons for the 2008 financial collapse, something we talked about in our video on mortgage-backed securities linked right here.
Bonds that are stable are called investment grade bonds.
穩定的債券稱為投資級債券。
06:52
These are typically US government bonds and strong profitable companies.
這些通常是美國政府債券和強大且獲利的公司。
06:56
Bonds that are risky are called high-yield bonds, or junk bonds.
有風險的債券稱為高收益債券，或垃圾債券。
07:01
These bonds have a greater risk of losing all of their value, which means they'll pay out a higher interest rate, but you could lose everything if the company goes bankrupt.
這些債券損失全部價值的風險更大，這意味著它們會支付更高的利率，但如果公司破產，您可能會損失一切。
07:12
Main categories of bonds are corporate bonds, which are bonds from companies, municipal bonds, which are bonds from states or cities, government bonds, which are bonds issued by a national bank or government, and agency bonds, which are issued by organizations that are affiliated with governments.
There are also unique bond structures different from what we initially talked about.
此外，還有一些與我們最初談論的不同、獨特的債券結構。
07:35
Those are zero coupon bonds, which are bonds that don't pay interest, but are rather sold at a discount and paid out in full at the end of the term.
這些是零息債券，這類債券不支付利息，而是以折價出售，並在期末全額償付。
07:44
For example, you could buy a $1,000 face value bond for $900, and in five years, get back the full $1,000. Convertible bonds are another type, which can be converted into stock down the line depending upon the stock price. This allows companies to pay less interest to the bond holders
that are willing to get stock of the company down the line instead of a higher interest rate over time. For example, a normal bond might have a 12% interest rate, and a convertible bond might have an 8% interest rate with the ability to be converted into stock if the stock hits a certain
price down the line. It's less payments for the company upfront and could be an attractive risk to the bond buyer. There's also callable bonds, which are bonds that a company can buy back.
If they determine, they can get a better interest rate down the line. Say their credit rating improves and interest rates decline. The company could buy back the bond and reissue the bond at a lower rate. Finally, there's putable bonds. These bonds allow the holders to sell the bond
back to the company before maturity, which is a way for investors to protect themselves if they're worried about the company not paying up down the line. Lastly, let's talk about how bonds are priced. Bonds prices fluctuate just like any other security on the market.
Just like if a company starts doing really well, their stock price might go up, so might their bond price. If a company starts losing a ton of money, their stock price might go down, so too might their bond price. All of it is a matter of supply and demand, what investors
are willing to pay and what somebody is willing to sell it for.
願意支付的價格以及某人願意出售的價格。
09:26
In reality though, there's a variety of technical factors that go into pricing bonds that we won't delve into in this video. At the end of the day, bonds are just loans to borrowers that individual investors hold, not big banks necessarily. They can be fantastically stable
investments that should make up part of your investing portfolio. They can also be radically risky investments that can make or break you. Bonds are at the center of the way our modern economy functions, and understanding how they work is crucial to understanding investing.
