Bonds, Explained Through SVB’s Collapse

Buying U.S. government bonds is among the safest investments you can make. In fact, people often put their college funds and retirement savings into bonds. In the midst of recession fears, bonds are often referred to as “risk-free” because there are only two ways you can lose money: 

• The government defaults, which is almost certainly not going to happen, or 
• You sell the bonds early at a loss, which contributed to the collapse of Silicon Valley Bank 

This might make you wonder how safe bonds really are, so WSJ explains why they’re still a good investment.