corporate bond

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Related to Corporate Notes: Corporate debt

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

Corporate bond.

Corporate bonds are debt securities issued by publicly held corporations to raise money for expansion or other business needs.

Corporate bonds typically pay a higher rate of interest than federal or municipal government bonds, but the interest you earn is generally fully taxable.

You may be able to buy corporate bonds at issue through your brokerage firm, usually at the offering price of $1,000 per bond, though you may have to buy several bonds of the same issue rather than just one.

You can buy bonds on the secondary market at their current market price, which may be higher or lower than par. However, most individual investors buy corporate bonds though a mutual fund that specializes in those issues.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.

corporate bond

see BOND.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005
References in periodicals archive ?
In some cases, taxpayers exchanged notes with their S corporations and claimed passthrough deductions on the strength of a corporate note received in exchange for a personal note.
Capital notes and corporate notes of the same default risk would be expected to respond in a similar fashion to movements in Treasury securities.
More importantly, we have no key maturities on our corporate notes until 2021, by then annual cashflows from our portfolio of 1.2 million square meters of leasable space should be more than sufficient to cover the principal due."
It can be used to secure traditional commercial loans, the backing of bonds, corporate notes, or other securities.
As for the corporate notes, investors preferred the following loans: FNCCE19, CE24, RusHydroCE7 and Magnit MBCE7.
Global ownership of local sovereign and corporate notes jumped $2.6 billion since December 31 to a record $35.5 billion on March 21, heading for the biggest increase in four quarters, according to data.
The bulk of this revenuewas generated through various significant deals that included Beacon Electric Assets Holdings Inc.'s P11.0 billion Corporate Notes, Puregold Price Club, Inc.'s P8.6 billion Initial Public Offering, Manila Water Company, Inc.'s P10.0 billion CorporateNotes, Metropolitan Bank & Trust Company's P10.0 billion Stock Rights Offering, among others.
23 September 2011 -- HSBC (LON:HSBA), First Metro Investment Corp (PSE:FMIC) and BDO Capital and Investment Corp were hired to handle SM Investments Corp's (PSE:SM) issue of PHP5bn (USD114.6m/EUR84.8m) corporate notes in two batches, the Philippine conglomerate said.
FIRST Metro Investment Corp., the investment banking arm of the Metrobank Group, on Wednesday said it is the sole arranger of the P1-billion fixed rate corporate notes issuance of Aeon Credit Service (Philippines) Inc., a landmark transaction in the Philippine capital markets.
Vista Land & Lifescapes, Inc., an integrated property developer controlled by the Villar family, has raised P7.7 billion through a corporate notes facility.
In a disclosure to the Philippine Stock Exchange on yesterday, SMC said it had agreed to issue the two-year fixed rate corporate notes at an interest rate of 5.25 percent a year.

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