Netflix has $14 billion of debt, and they pay about $200 million in interest every quarter. So don’t feel bad that you have debt. Both America & some of the largest companies in the country have billions in debt 😂 In order for the companies to grow, they need access to money...so they issue bonds. The everyday person goes to the bank, but companies, municipalities, etc issue bonds and gain access to money utilizing investors. Bonds are only considered “safer” than stocks...essentially because it’s debt. The issuer of the bond (in this case Netflix) get the money, and has to pay it back plus interest by a certain date (maturity date). The investors profit from the interest charged. Now the everyday person, who borrows money, has to having a good credit rating. For people, we have a numbered credit score. For companies like Netflix, they use letters as their credit rating - With the best rating being AAA. As an investor, the more bonds you have in your portfolio/retirement account, the less risky you are (unless they’re high/yield junk bonds - then they’re a little more risky). ...and the more stocks (aka equity) you have, the more risky your portfolio is. Both are good investments, but serve two different purposes. I hope this breakdown helps 🥰 #empify #ashleymfox #wealth #bonds #invest