FINANCIAL BASICS: DEBT AS AN INVESTMENT

Investors can invest in long or short-term debt products. Bonds and Treasury Bills are some common debt products. Debt as an investment means that you get returns (yields) from interest (coupon) payments for the duration of the loan you've made to another entity. Debt investments are fixed income products and are generally less risky than equity investments. They're generally safer because loans and bonds are often secured by collateral.