Corporate Bonds

What are Corporate Bonds?

Corporate Bonds

Note: The typical rates of return quoted above are from investment grade corporate bonds in developed countries. High-yield and junk bonds typically offer higher rates of interest.

Corporate Bonds

  1. When you buy Corporate Bonds, you are lending money to a company.
  2. Corporate Bonds are debt Instruments ?and the company owes you money.
  3. The ability of a corporate to pay back its debt is called its Credit Rating.
  4. The company uses your money to create new products, expand & pays a fixed interest on your investment.
  5. If the corporate goes bankrupt, you can lose some or all of your money.
  6. Corporate bonds are capital protected on paper, and bond holders get paid before stock holders if the company goes bankrupt.
Remember - Corporate bonds offer high rates of return because they cannot print money like government bonds, and there is a significant capital risk if the company fails.

About the Author Amit

Amit is an Independent Financial Advisor, based in Dubai since 1997. He is part of the prestigious ‘Million Dollar Round Table’ (MDRT), which is an elite club of the best financial advisors worldwide. He has authored the ‘6-Step Financial Success Guide’, and the book ‘Creating, Preserving, Distributing Wealth’. He helps business owners and professionals ‘Create A Second Income’ through investments.

follow me on:
>