corporate bond

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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.

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.

corporate bond

see BOND.
References in periodicals archive ?
Corporate bonds are issued by companies to raise money more cheaply than by borrowing from the bank.
Christian Katz, division CEO of Swiss Exchange said, "With the new electronic trading platform for corporate bonds, we are creating a regulated market that will benefit not only market professionals but also provide greater efficiency for their clients, in other words pension funds and asset managers .
Moody's, the US credit rating agency pointed out recently that the number of companies defaulting on their corporate bonds more than doubled last year.
Redemption requests for the RBC Target 2014 Corporate Bond Index ETF are expected to be accepted until the close of business on Thursday, November 13, 2014.
The RBC Target Maturity Corporate Bond ETFs seek to provide investors with a high quality and flexible fixed income solution that functions similar to a bond, said Mark Neill, head of RBC ETFs.
Claymore Securities Inc that offers investment solutions declared on Tuesday distributions for its Claymore BulletShares Corporate Bond ETFs for September 2010.
The arrangement is indicative of a recent trend among corporate bond issuers, who, spurred on in part by a healthy market, have stepped up efforts at hiring minority underwriters to reach a broader base of institutional investors--particularly the small and medium-size accounts that are typically neglected by larger investment banks.
M2 EQUITYBITES-2 August 2010-Claymore BulletShares Corporate Bond ETFs announces August distributions(C)2010 M2 COMMUNICATIONS http://www.
State-owned CPC Taiwan will soon hold public bidding for its NT$20 billion corporate bond issuance, and state-run Taipower will also float seven- or 10-year term bonds this month.
Currently, Williams Capital offers equity and money-market trading, government-agency and corporate bond trading and underwriting capabilities.
ETF name: iShares $ Short Duration Corporate Bond UCITS ETF

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