Corporate bonds

RECENT NEWS
Financial Times  Jun 29  Comment 
Investment-grade debt had not had consecutive negative quarters since financial crisis
MarketWatch  Jun 27  Comment 
The flare-up in market volatility has left investors scratching their heads when it comes to the outperformance of safest segment of the corporate bond universe over its riskiest peers.
Forbes  Jun 21  Comment 
Despite strong US corporate earnings, corporate debt supply is inching up to historical highs. As rates rise and profits start to cool, these debt burdens will start to pinch.
Financial Times  Jun 18  Comment 
A retreat by Japanese and tech investors is a ‘one-two punch’ for the asset class
The Economic Times  Jun 16  Comment 
FPIs are allowed to invest in various debt market instruments such as govt bonds, treasury bills and corporate bonds, but with certain limits and restrictions.
MarketWatch  Jun 8  Comment 
Equities are leaving corporate bonds behind, which may serve as a sign of brewing danger to exuberant stock buyers, according to Goldman Sachs.
The Hindu Business Line  Jun 3  Comment 
In a rising rate scenario, the fund’s lower maturity can help cap losses
MarketWatch  May 25  Comment 
A selloff for Italy’s sovereign debt means that Italian corporate debt now appears to be viewed as less risky than government bonds.




RELATED WIKI ARTICLES

Related Articles

 
TOP CONTRIBUTORS

A corporate bond is a bond issued by a corporation. It is a bond that a corporation issues to raise money in order to expand its business. The term is usually applied to longer-term debt instruments, generally with a maturity date falling at least a year after their issue date. (The term commercial paper is sometimes used for instruments with a shorter maturity.) Sometimes, the term "corporate bonds" is used to include all bonds except those issued by governments in their own currencies. Strictly speaking, however, it only applies to those issued by corporations. The bonds of local authorities and supranational organizations do not fit in either category.

Corporate bonds are often listed on major exchanges (bonds there are called "listed" bonds) and ECNs like Bonds.com and MarketAxess, and the coupon (i.e. interest payment) is usually taxable. Sometimes this coupon can be zero with a high redemption value. However, despite being listed on exchanges, the vast majority of trading volume in corporate bonds in most developed markets takes place in decentralized, dealer-based, over-the-counter markets. Some corporate bonds have an embedded call option that allows the issuer to redeem the debt before its maturity date. Other bonds, known as convertible bonds, allow investors to convert the bond into equity.

Corporate Credit spreads may alternatively be earned in exchange for default risk through the mechanism of Credit Default Swaps which give an unfunded synthetic exposure to similar risks on the same 'Reference Entities'. However, owing to quite volatile CDS 'basis' the spreads on CDS and the credit spreads on corporate bonds can be significantly different.

Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki