What does it mean to invest in debt?

Investing in debt typically involves purchasing bonds or other debt securities issued by governments or corporations. When you invest in debt, you are essentially lending money to the issuer in exchange for periodic interest payments and the return of the principal amount at maturity. This strategy can provide a predictable income stream and lower risk compared to equity investments, but it may offer lower potential returns. Additionally, the value of debt investments can fluctuate based on interest rates and the creditworthiness of the issuer.