The Four Principal Categories of Bonds

Geoff Block
2 min readMar 17, 2020

Geoffrey J. “Geoff” Block is a former Wall Street executive who has managed a Bluffton, South Carolina-based holding company since 2013. In addition to hard assets, such as real estate, Geoff Block invests in soft assets like stocks and bonds to help grow his portfolio.

Bonds are fixed income instruments issued by corporations, financial institutions, municipalities, and governments to help finance major projects. They act as loans and are tradeable assets among individual creditors. Listed below are the four primary types of bonds.

1. Treasury bonds — These are issued by governments and can also be referred to as bills and notes, depending on their maturity date. They are generally regarded as risk-free.

2. Agency bonds — While agency bonds carry risk, they are considered the safest following treasury bonds. They are issued by government-sponsored enterprises and federal agencies like the Government National Mortgage Association.

3. Municipal bonds — Issued by city, state, and county governments to fund infrastructure or major projects, municipal bonds often offer federal tax exemptions for investors.

4. Corporate bonds — These are issued by for-profit companies and considerably more risky than treasury bonds. It’s not uncommon for corporations to cancel bonds in the face of declining rates. However, the increased risk is offset by higher interest rates.

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Geoff Block
Geoff Block

Written by Geoff Block

A former managing member and majority owner of Crown Growth Partners LLC, Geoff Block left Wall Street in 2012 and founded RLB Squared in 2013.

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