New Delhi. US President Donald Trump is continuously investing money in bonds. From late August to early October, Trump invested about ₹713 crore ($82 million) in municipal and corporate bonds. Earlier he had invested $103 million in bonds. The American Office of Government Ethics (OGE) has given this information.
According to the US Office of Government Ethics (OGE), Trump bought bonds of big companies like Netflix, UnitedHealth Group, Boeing, Meta Platforms, Home Depot, Broadcom and Intel. Interestingly, the impact of the policies made by the Trump administration on the functioning of these companies has been seen in the recent past. The US government has also acquired 10 percent stake in Intel. Along with corporate bonds, Trump has also purchased municipal bonds issued by many US cities, local school districts and hospitals.
Price information not given
Government reports do not disclose exact transaction amounts or purchase prices. Under the rules, elected officials and government appointees disclose only the categories of transactions, not the full amount. It is also clear in the report that Trump did not sell any bonds during this period, but only bought them. Earlier in August, Trump had made 690 transactions and during that time also he had purchased bonds worth about $103.7 million.
Trump family does not take investment decisions
In August, a White House official had said that Trump and his family do not make investment decisions themselves. Their investments are made by independent financial managers who invest following recognized indices. These transactions have been approved by OGE as per the rules. Trump is different from other presidents because he neither sold his assets nor placed his businesses in an independently controlled blind trust. His huge business empire is still managed by his two sons.
What are bonds?
Bond is a type of debt instrument or debt instrument. It is issued by the government, companies or any big organization. Bond is the way by which government, company or any institution borrows money from the public. In this, the investor gives money to the institution and in return the institution promises to return the interest and the final amount on time.
When the government needs funds for a road, bridge, hospital or any big project, it does not take a loan from the bank every time. Instead, it raises money from the common people by issuing bonds. Big companies also adopt the same method to raise money for setting up a factory, expanding their business or repaying old loans etc.
Types of bonds in India
Bonds in India are divided into two major categories, government bonds and corporate bonds. Both of these come with different risks and returns. Investors can invest money in them as per their need and risk tolerance. Government bonds are issued by the government while corporate bonds are issued by private companies.
Government bonds are considered the safest, because the probability of their default is almost zero. G-Secs of the Government of India or bonds issued by RBI are examples of this. People who want safe investment prefer them because the risk of losing money is very less here.
Corporate bonds are issued by private companies like Adani, Tata group etc. They pay higher interest than government bonds, but they also carry more risk because their returns depend on the financial condition of the company.
Is investing in bonds profitable?
Bonds are considered the most reliable source of income. In these, the investor gets regular interest, which is quite stable as compared to the stock market. These are considered good investment options for the long term, especially for those who want to stay away from market fluctuations.
