Corporate Bonds and Risks

Corporate Bonds
Corporate bonds are issued by corporations and represent promises from those corporate issues in paying-off periodical interests and returning the principal to bondholders at maturity.

There are many types of corporate bonds available, such as mortgage bonds, debenture bonds, variable-interest bonds, convertible bonds, and zero-coupon bonds. These bonds are either secured or unsecured.

A junk bond is not a special type of bond, instead it is a low-rated conventional bond with high risk. This type of corporate bond has a BBB rating (by S&P) and BAA (by Moody?s Investor Services, Inc. or less, which consists on a low-quality rank debt that is near a default. Some of these bonds do not have ratings. To encourage investors junk bonds coupon rate are much higher than coupon rates of an investment grade bond.

The risk of corporate bonds Beginner Money Investing Collateralized Mortgage Obligations Corporate Bonds and Risks Purchasing Corporate Bonds Before Purchasing Existing Corporate Bonds The risk of corporate bonds Municipal Bonds