CORPORATE BONDS

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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. When one buys a corporate bond, one lends money to the "issuer," the company that issued the bond. In exchange, the company promises to return the money, also known as "principal," on a specified maturity date. Until that date, the company usually pays you a stated rate of interest, generally quarterly, semi annually or annually.

Corporate bonds are issued by PSU & private companies.

Some examples of bonds where Vivek Finserve deals are NHAI, REC, PFC, SBI, BOB, etc.

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Bonds Can Further Be Classified As

  • Short-Term: Set to mature in three years or less, these bonds were once considered the safest, because they were held for less time.
  • Medium-Term: The term on these bonds are for 4 to 10 years.
  • Long-Term: With terms of more than 10 years, longer-term bonds usually offer higher interest rates because they tie up lenders’ money for a decade or more.