Today on the program a bond market primer trust me it's the story you didn't know you needed.

From American public media this is Market Flex.

In Los Angeles I'm Kai, Rizdole it is Tuesday today the 21st day of March could as always

to have you along everybody.

Much is yet to be written said and done about the current banking agenda in this economy.

But at the root of it the bank runs the collapses the potential reworking of how bank insurance

works.

Let us not forget the politicking of it to at root is one seemingly simple economic reality.

When interest rates go up bond of values go down and that's what got a bunch of these

banks into trouble.

But why?

What does the fed raising rates have to do with the value of bonds sitting in bank vaults?

Marketplace's a sub-rebenisher gets us going.

Okay so let's say you buy a bond.

Hi bond.

And you know it's a bond so it gives you payments they're called coupons.

I love you bond because you give me money.

So you pay like a thousand dollars for a ten year bond you get paid five percent.

Five percent.

And these payments are locked in okay they're part of the bond no matter what you get like

fifty dollars a year.

Fifty dollars.

...