“An RSA Retail Savings Bond is an investment with the Government of South Africa which earns fixed or inflation linked interest for the term of the investment.”

Let’s simplify this- Bonds are issued by governments and companies when they want to raise money. In finance, a bond is an instrument of indebtedness of the bond issuer to the holders(investors)

Bonds are therefore Assets. You can invest in bonds. They have a lower level of volatility than the stock market generally with a higher return than money markets (bank instruments).

The disadvantages of bonds include rising interest rates, market volatility and credit risk. Bond prices rise when rates fall and fall when rates rise.

In other words right now in SA market where the reserve bank has cut interest rates the bond prices have significantly risen. This is why we say not all asset classes fall in the same season.

Gov bonds Fede? Well,When you buy a government bond, you lend the government an agreed amount of money for an agreed period of time. In return, the government will pay you back a set level of interest at regular periods.

Are we together class?