Corporate bonds

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Corporate bonds

Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Corporate Bond

Debt securities issued by a for-profit company instead of a government. Corporate bonds are a major way companies raise funds for their operations or for a specific project. The risk of a corporate bond for a bondholder depends on the creditworthiness of the issuing company. As with all bonds, corporate bonds have a maturity, at which time the principal is repaid to bondholders. They also usually have a stated coupon rate. Corporate bonds are taxable.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
Unlike the first corporate bonds, LOLC's offer investors not only fixed-coupon bonds but also those indexed to foreign exchange rates, with an interest rate that varies according to foreign currency exchange rates.
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The last corporate bond was a Sh6 billion paper issued by East African Breweries (EABL) in April 2017 and there have been more redemptions of the fixed income securities than new offerings.
Terming the corporate bond segment as a "good story" in the last two years, Tyagi said in 2016-17, Rs 6.7 lakh crore was invested in corporate bonds, a figure that would likely be surpassed in the ongoing fiscal.
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"With interest in the fixed-income markets and market design on the rise, the Academic Corporate Bond TRACE Data provides researchers with broad content to investigate issues of interest to market participants and regulators including liquidity provision, search costs, inventory models, price discovery and the treatment of retail orders," Jonathan S.
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China is already witnessing a spate of downgrades and default of corporate bonds. The largest credit rating agency in India, CRISIL, has recently pegged the aggregate downgraded debt in the domestic market at Rs 3.8 lakh crore.
The legislative environment for bonds requires amendments to make trading on government bonds available for individuals directly through brokerage firms, which means attracting investors to the bond market in general and specifically corporate bonds.
The most notable shift is from the National Association of Insurance Commissioners' NAIC 1 investment-grade category (AAA- to A-rated corporate bonds) to the NAIC 2 category ('BBB').
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