Corporate Bond

corporate bond fund investment & finance definition
A mutual fund that seeks a high level of income by investing two-thirds or more of its portfolio in corporate bonds.
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Corporate Bond
Definition: A bond that is issued by a corporation to investors. Corporate bonds are given letter grades based on how strong the company is, financially.

Corporate bonds are issued when a company needs to raise money to finance its business operations or, oftentimes, an expansion into new directions.

Corporate bonds
Long-term bonds issued by corporations with strong credit ratings. Holders of corporate bonds generally receive interest payments semiannually.

If you're looking to invest in corporations, you should make sure that you understand the differences - and the different risks - of corporate bonds versus stocks.

Corporate Bonds: Contents
What Are Corporate Bonds?
How Big Is the Market, and Who Buys?
Benefits of Investing in Corporate Bonds
Types of Issuers
Basic Terms of Bonds
Understanding Interest-Rate Risk
Understanding Yields ...

Corporate bonds
Definition:
Debt obligations issued by corporations. ...

Corporate bonds are debt instruments that are issued by corporations considered to be publicly held.

Investing in Corporate Bonds
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If there was one factor which has driven development in the US, then it would capital.

Corporate Bonds
Corporate bonds are debt securities issued by private and public corporations. Companies issue corporate bonds to raise money for a variety of purposes, such as building a new plant, purchasing equipment, or growing the business.

Corporate Bonds
A corporate bond is an IOU issued by a public company, such as HLL,ITC, TELCO etc. When you invest in a corporate bond, you are lending money to the company.

Corporate bonds are characterized by higher yields because there is a higher risk of a company defaulting than a government.

Corporate Bond
A corporate bond is a long-term debt security issued by a company, with a fixed periodic interest rate and a maturity of more than one year.
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Corporate Bonds: Debt instruments issued by for-profit corporations.
Investing Terms D
Depreciation: A non-cash expense that provides a source of free cash flow.

Corporate bond
A bond issued by a corporation. (See also Bond, Municipal bond, U.S. savings bond.) ...

Corporate bond fund An investment company (mutual fund) that invests in long-term corporate bonds and passes the income on these securities to its shareholders.

Corporate Bonds
Bonds issued by corporations to raise capital.
Corporation
The most common form of business organization, chartered by a state and given legal rights as a separate entity from its owners.

Corporate bonds
A corporate bond is a debt instrument issued by a private or public corporation. Corporate bonds are rated by Standard & Poor's, Moody's and other credit rating agencies.

Corporate Bond
Debt obligations issued by corporations as an alternative to offering equity ownership by issuing stock. Debt risk is judged by rating agencies.

Corporate bonds: Bonds issued by corporations.
Corporation: A business entity treated as a person in the eyes of the law. It is able to own property, incur debts, sue, and be sued.
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Corporate Bond: A debt security issued by a corporation. A corporate bond typically has a par value of $1,000, is taxable, has a term maturity, and is traded on a major exchange.

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

Corporate bonds
Debt obligations issued by corporations.
Corporate charter
A legal document creating a corporation.

FOREIGN CORPORATE BONDS - PowerShares International Corporate Bond (PICB) -
Benchmark: S&P International Corporate Bond
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Corporate Bond Rates
Just as governments issue bonds to fund their activities, so do corporations. Corporate bonds are considered riskier than Treasury Bonds and compensate for their higher risk with higher yields.

Corporate bonds are issued by companies just as they would issue stock and have higher yields because they contain higher risk than government bonds.

Corporate bonds usually come in $1,000 denominations and have maturities ranging up to 40 years, but are usually shorter.

Corporate bond A long-term debt instrument issued by corporations to raise capital. The issuing corporation is obligated to repay the bond debt on a specified date, and to pay a specified rate of interest on the debt throughout the term of the bond.

Corporate bonds paying a fixed rate of interest is another example of a good investment when deflation occurs. Remember, one of the ways the Federal Reserve can deal with deflation is to lower interest rates.

Corporate bonds are issued by companies.
Convertible bonds or convertible debentures are those that can be converted into some other kind of securities, usually common stock in the corporation that issued the bonds.

Corporate bonds arranged so that specified principal amounts become due on specified dates. Related: Term bonds
Settlement date
Also called the delivery date, the designated date at which the parties to a futures contract must transact.

Corporate Bond
Debt obligations issued by companies as a way to raise cash for capital expansion or growth.
Correlation ...

Corporate bonds that have bad credit ratings.
Large-Cap
A company valued at more than $8 billion dollars.

A corporate bond has a coupon rate of 7.2% and pays 4 times a year, on the 15th of January, April, July, and October. It uses the 30/360 US day count convention.

In a corporate bond the cash flows are promised, but the risk comes from the fact that these cash flows might not be delivered.

Junk Bonds: corporate bonds with poor credit ratings.

Large-Cap: company with market capitalization greater than $8 billion.

Serial bonds
Corporate bonds arranged so that specified principal amounts become due on specified dates. Related: Term bonds.
Serial covariance
The covariance between a variable and the lagged value of the variable; the same as autocorrelation.

Comparison to corporate bonds
Because municipal bonds are most often tax-exempt, comparing the coupon rates of municipal bonds to corporate or other taxable bonds can be misleading.

These are secured corporate bonds that are used to raise long-term debt capital.
Debt (see Bonds)
Debt Management Office (DMO) ...

Mortgage Bond is a corporate bond backed by the mortgage on a particular piece of property, with a first mortgage bond backed by the first mortgage, a second mortgage bond backed by the second mortgage, ...

collateral trust certificate A corporate bond backed by other securities, generally a parent corporation borrowing against securities of its subsidiaries. Collateralized Bond Obligation Abbreviated as CBO.

Index compares yields of higher grade to lower grade corporate bonds. As yields on lower grade bonds fall, it shows that investors are more confident about the economy. Used for an insight into possible market sentiment about equity securities.

A One-Touch (q.v.) Knockin Put (q.v.) Option on the value of a corporate bond.
A One-Touch (q.v.) Knockin Put Option (q.v.) on the lowest value of n corporate bonds in a portfolio.

Debt instrument An asset requiring fixed dollar payments, such as a government or corporate bond. Debt market The market for trading debt instruments.

Corporate bondholders are paid their interest before stockholders are paid a dividend.

For instance, the difference in interest rates offered for five- year industrial corporate bonds and five-year utility corporate bonds. Intrinsic valueThe amount by which an option is in-the-money.

The spread between corporate bonds and long-term Treasuries might look generous today. But the Federal Reserve purchased hundreds of billions of dollars worth of Treasuries over the past year. That kept Treasuries' yields down substantially.

A further consideration is corporate bonds. Riskier than Treasury Bonds, companies borrow money with these instruments by offering above average interest payments on them.

iShares iBoxx $ High Yield Corporate Bond (HYG)
PowerShares Fundamental High Yield Corp Bond (PHB)
SPDR Barclays Capital High Yield Bond (JNK)
Market Vectors High-Yield Muni ETF (HYD)
iShares Barclays 3-7 Year Treasury Bond (IEI) ...

Basically debt funds are the mutual fund schemes that invest their entire corpus in government securities, corporate bonds and other money market instruments with a prime objective of providing steady returns in the short run and capital ...

Bonds - corporate bonds, municipal bonds, savings bonds, U.S. government treasuries, etc.
Money markets - highly liquid funds that are designed to protect your purchasing power; considered to be a cash equivalent ...

Here you invest in safe, income-producing securities such as Treasury and corporate bonds. You can also purchase longer-term CDs, zero-coupon bonds and tax-free municipal bonds to meet special needs.

# Be bearish or bullish about the corporate bond market
One of the ETFs you could spread bet on is the iShares GS $InveTops Corporate Bond Fund. It's designed to reflect the US corporate bond market (investment-grade only, Bloomberg ticker LQD).

A daily digest of municipal and corporate bond offerings, market commentaries, fixed-income statistics and other bond information. The blue list is used by bond investors to identify investment opportunities in the bond market.

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There are various types of bonds, such as corporate bonds, municipal bonds, government bonds, debentures, collateralized bonds, zero coupon bonds, and convertible bonds.

Bonds
An Investor's Guide to Corporate Bonds - Information from the Securities Industry and Financial Markets Association to help investors understand corporate bonds.

Government securities
Municipal bonds
Corporate bonds
U.S. Savings Bonds
Mortgage and asset-backed securities
Government agency securities
Treasury bills
Bank certificates of deposit
Commercial paper ...

LQD - Investment Grade Corporate Bonds -1% (yield 5.7%)
IEF - 7-10yr Treasuries 6.65% (yield 3.7%)
TIP - Treasury Inflation Protected Bonds 7.87% (yields 5.6%) ...

There are several basic types of mutual funds: stock funds, owning shares of common stocks; bond funds, owning corporate bonds, tax-free municipal bonds, government bonds; index funds, investing in a portfolio that mimics an index, such as the S& ...

Other types of bonds that can help diversify a portfolio include corporate bonds, junk bonds, municipal bonds and foreign government debt instruments.
Here are some of the caveats of bond investing: ...

See also: Bonds, Market, Investment, Securities, Income