corporate bond

Also found in: Dictionary, Thesaurus, Legal, Wikipedia.

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 ?
Under the corporate bond loan, the company has resolved to prepay SEK32.5m.
The story is a similar one for global corporate bonds, with year-to-date returns of just over 7.5 per cent, reducing yield premiums over benchmark US government bonds to their lowest since the 2007-08 crisis.
CIMB Investment Bank Berhad tops RAM's league tables for both corporate bonds and Sukuk as at end-September 2016, having arranged MYR 21.25 billion or 56 per cent of the MYR 37.88 billion of RAM-rated corporate bonds and Sukuk to date.
Since lower graded corporate bond paper offer higher yield than the 8.25 per cent, the schemes manage to offer higher returns.
"Relative to reported statutory capital, the quality and liquidity of the corporate bond portfolio has deteriorated," the report states.
Daniel Merandi has over 14 years of experience in establishing unique tools for raising capital on an International level using legal representation, merchant banks, private equity, private financial instrument allocations, corporate bond issues, specific humanitarian syndicates, and exclusive, financial private banking relationships throughout capital markets.
Evaluation Index System Design for Credit Risk Analysis of Corporate Bond
Chidambaram also said the current corporate bond auction mechanism will be replaced with "on-tap system" that is used for infrastructure bonds.
NEW DELHI -- The finance ministry is readying a big booster dose for corporate bonds market that includes allowing banks to count their top-rated private sector bond purchases towards the mandatory investments and a reduction in funds that companies have to keep aside every year to redeem debentures issued.
26, 2012 (CENS) -- Inspired by a comparatively low interest rate environment, Taiwanese companies are increasingly willing to issue corporate bonds so far this year, making local bond underwriters believe that domestic corporate bond issuances will amount to an all-time high of NT$420 billion this year.
Global Banking News-November 10, 2010--RBI amends corporate bond repurchases(C)2010 ENPublishing -
FOR savers depressed by the end of National Savings & Investments index-linked savings plans, the next best thing could be new M&G inflation-linked corporate bond fund, open to minimum lump sums of pounds 500 and monthly contributions of just pounds 10.

Full browser ?