Corporate Bonds

What are Corporate Bonds?

Corporate bonds are debt securities issued by companies. These securities represent a promise to repay the principal amount along with interest payments according toa predetermined schedule. Investors determine the price they are willing to pay, based on their assessment of the issuer's default risk. Following their initial issuance, these bonds can be traded on the secondary market until their maturity date.

‍

Advantages of Corporate Bonds

• Safety: Corporate bonds offer a relatively safe investment, especially compared to more volatile assets such as stocks.
• Predictable income: They provide periodic interest payments, ensuring a regular income flow.
• Access to the secondary market: These securities can be traded on the secondary market, providing liquidity as the investment can be sold before maturity.
• Variety of terms: Since they are available in different maturities, the investment can be adapted to individual needs and goals.
• Transparency: They are generally regulated, ensuring clear information on issuance, terms and risks.