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Originally Posted by ParsnipsRhubarbCelery
Nowadays, which is more popular?
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Off the top off my head, I would have to say CDs are more popular in the short term. As stated earlier, bonds are considered debt to a corporation and they have risk associated with them. CDs are considered riskless assets and they are insured. In the event a firm is liquidated, the holder of a bond will be one of the last investors on a long list of debt collectors to recieve payment, if there are funds left over. As for the long term, bonds and CDs can be somewhat interchangeable in terms of hedging a portfolio. Of course ,this is based on the firm in question, risk level, leverage, economic status, etc.