Corporate Bonds

Corporate bonds are debt securities issued by companies to raise money. When you buy a corporate bond, you are lending money to the company for a fixed period, typically in exchange for regular interest payments and the return of your principal investment at maturity. These bonds can vary in risk and return; companies with strong financial standings usually offer safer bonds with lower yields, while those with higher risk may offer higher yields to attract investors. Ultimately, corporate bonds are a way for companies to finance their operations and for investors to earn interest on their money.