Whoever thought that the whole idea of not purchasing bonds anymore was behind us needs to take a second look at the way things are going. The latest reports and figures that have been released by the European Central Bank show that the European bank bought some €237m worth of sovereign bonds at some time in the last week. That is the single largest acquisition since the middle of August and it signals that the bond purchasing program might not be phased out at all. It is not as much the amount spent, for it is not that large an amount for a central bank to disburse. It is more the underlying signs that catch the eye, for this is indicative of continuing issues that ail the bond markets in Europe. The European Central Bank was buying Irish, Portuguese and Greek bonds in an effort to offer [...] 

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Few days ago, I explained asset allocation basics with a brief description about various asset classes. We will, however, talk only about fixed income assets in this post. Irrespective of your risk taking ability, fixed income assets should be a part of your portfolio. Why Should You Have Fixed Income In Your Portfolio? This asset class is comparatively safer than other classes, but they are, at times, volatile too. Such investments provide fixed income to the investor in form of interest and dividends, and are considered as ‘debt’ or ‘liability’ for the other party. Because they provide fixed income at regular intervals, they are known as ‘fixed’ income assets. However, many times, the issuer may not opt to pay your income, like any other debtor. So, there is always a risk in owning [...] 

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