The Ultimate Guide To Investing In Bonds. "Bonds are loans from investors to governments and companies for a fixed length of time, or term. Although typically they don’t have the high returns of other financial investments, they are seen as essential to any portfolio. They aren’t just limited to big institutional investors – everyday investors can use them to diversify their portfolios and spread risk." Source: https://www.fma.govt.nz/investors/resources/bonds-guide/