List of Bonds Articles

The bond market has flourished rapidly over time. There are varieties of bonds in the market and one of the less risky ones is government bonds.

As businesses grow, so do their capital needs. Filing for an IPO is one way in which companies attempt to infuse massive funds into their company. An IPO or Initial Public Offering is the process by which a privately held company or a government entity raises money from the open market.

Some prefer to invest in simple financial instruments such as Mutual Funds, while some look towards high-risk, high-reward instruments such as Equity.

The bond market has flourished rapidly over time. There are varieties of bonds in the market and one of the less risky ones is government bonds.

The financial market is one of the best places to invest money and multiply wealth over time. However, as there are numerous financial instruments where a person can invest, it becomes confusing to choose.

The bond market is where new debt securities are issued and traded. The bond market can be subdivided into two types - Primary market and secondary market.

foreign currency exchangeable bonds (FCEB) are regulated by Foreign Currency Exchangeable Bond

Indians have a long-standing fascination with physical gold. Some buy it for religious reasons, while some buy it as a tradable commodity to realise profits based on the difference in cost and selling price.

Businesses are inherently risky. It is the one thing that unites them across sectors and geographies. While organizations can't run without risks, they can mitigate them.

Though issuing equity is a popular way for organizations to raise money, some organizations consider issuing debt securities, too.

A coupon rate is the rate of interest paid on the face value of a bond, by the issuer, to the bondholder. Coupon rates are determined based on the prevailing market rate, and the creditworthiness of the issuer.

Bonds are considered one of the safest investment choices compared to stock, derivatives, and other financial instruments.

The simplest definition of a bond is when you invest or loan a sum of money to a government or corporate entity for a specific period (maturity period).

Bonds have become the go-to investment option for investors who want to limit the losses from other investments by earning a regular interest on the principal amount they invest in bonds.

SLBM refers to the Stock Lending and Borrowing mechanism that allows a trader to borrow shares that they do not already own or lend stocks and shares that form a part of their portfolio.

Sachin has recently started investing in the stock market but doesn’t know too much about the factors that influence the price movement

The investment options have increased in the market over the years, and one of them is bonds. They not only keep the capital safe but also enhance the passive income levels of the investor.

Bonds are among the popular financial securities issued by the government and big corporations to borrow money from the general public.

Accretive in bonds or accretion refers to the gradual increase in value of a bond's principal over time due to the passage of time.

When bond prices move lower (drop), bond yields move higher in return. Similarly, when a bond's price moves higher (increases), its yield will move lower. Short-term results are more difficult to predict.

A Callable bond is a type of bond or debt security that allows the issuer of the bond to retain the privilege of redeeming it at some point before the date of maturity.

When the government or corporate requires funds, they may consider issuing bonds. They are financial instruments which raise funds from the general public for a specific period.

A financial market facilitates the connection between fund seekers and investors. Mainly, there are four types of financial markets: Stock market, bond market, derivatives market, and currency market.

NCDs are unsecured debt securities. Investment in them could offer good diversification to those who also invest in equities. NCDs of investment grade issuers are also a secure form of investment.

The government issues these bonds to raise debt money from the general public. It raises this money to meet its various expenditure requirements.

The coupon rate (also called nominal yield) is the annual coupon payments paid by the bond issuer relative to the bond's face or par value.

Bonds affect the stock market because stock prices tend to rise as bonds fall, and vice versa. Bonds compete with stocks for the investor's dollar, as bonds are often considered safer than stocks.

The potential for investment losses that arise due to a change in interest rate is categorized as Interest rate risk. If the interest rate rises, the bond value or the value of other fixed-income investments tends to decline.

The coupon rate is the annualized interest amount. It is the percentage of the face value that a bond pays in one year.

However, one thing that is usually missing when looking at a company’s success is their cash flow or how much capital they have to expand. Expansion is the fundamental factor for a company to ensure sustainability and increased profitability.

Fixed income securities are everyone’s favourite while safe capital investing is the first preference. Although, they offer lower returns as compared to equity and other risky investment options.

An Angel bond is the opposite of a fallen angel, which is a term for a company’s bond which has faced a negative impact due to increasing debt.

The recent market correction has shifted the choice of investment from equity to debt instruments. Irrespective of the type, investment decisions are a trade-off between the potential rewards and risk involved and each investment is subject to some risk.

Though equity and debt securities are issued to raise money, they differ by structure. Unlike equity, debt securities have prespecified principal repayment and coupon payment schedules.

Investing in bonds is considered among the best avenues of earning passive income. Bonds are debt instruments where an investor gives a sum of money to a government or corporate entity for a certain period (maturity period).

Companies need liquidity/money to fund their expansion plans. Issuing debt is one such way of raising funds.

A bond is a debt instrument which allows investors to lend money to a corporate or government entity for a defined period. In exchange the investors get a fixed return of interest called a coupon throughout the bond’s life.

Almost every experienced investor diversifies and invests in various asset classes. Although they may start with equities, they do not retrain their investments to trade in stocks.

People invest in two of the most widely invested asset classes: Equities and Debt. While they may start their investment journey with equities, they tend to diversify into debt to earn regular income in the form of interest.

When experienced investors choose the stock market instruments, they invest in multiple asset classes beyond equities. Although certain assets can yield higher returns, they swear by diversifying their investments within the stock market such that they are profitable in case one asset class goes through a bear cycle.

Bonds are a financial instrument issued by companies to raise capital and fund their business operations. The company is called the issuer, and the buyer is called the investor or bondholder.

In a stock ETF, the fund is generally composed of all the stocks in the index. This is not the case in most fixed income ETFs. The fund holds a fraction of the bonds that make up the underlying index.

Bank deposits, Mutual Funds, Stocks, Futures and Options–investors always seek new investment avenues.

Investors diversify and ensure they have uninterrupted profits in every stock market scenario. Starting with equities, they move to the debt instruments such as bonds, where they know they will receive returns through a coupon rate or value appreciation.

The investment landscape has grown immensely over the years with plenty of financial avenues rising in the market. Thereby, creating opportunities for the individuals to augment their income levels.

Irrespective of the investment type, decision-making entails detailed market research and analysis. Investors use a combination of fundamental and technical analysis to evaluate the investment's worth. Various research reports, financials, and industry reviews assist in chalking out an investment plan.

Experienced investors allocate their capital to equities as they are volatile and can offer better returns but keep aside a portion to invest in debt instruments.

The SLB Mechanism is a system where a trader can borrow shares that they don’t own. The associated SLB transaction has a rate of interest and a fixed tenure.

A bond is a type of fixed-income investment instrument, that refers to a loan made by an investor to the borrower.

As businesses grow, so do their capital needs. Filing for an IPO is one way in which companies attempt to infuse massive funds into their company. An IPO or Initial Public Offering is the process by which a privately held company or a government entity raises money from the open market.

Non-Convertible Debentures provide higher interest rates and are issued by corporations, making them an attractive choice for investors looking to diversify their portfolio with corporate debt instruments.

The recent rate hike by the Reserve Bank of India has led to the increased popularity of the bond market. Zero-coupon, convertible, and inflation-linked bonds are among the various bonds traded in the bond market.

A Fallen Angel Bond is an investment-grade corporate bond that was originally issued with an investment-grade rating but has since been downgraded to a high-yield (non-investment grade) rating due to adverse circumstances at the issuer.

As an investor, you will be paid interest during the life of the bond and receive the principal amount back at the end of the bond’s life (or maturity) or at the end of a dedicated period in which the interest amount is credited to your account.

In an economic scheme of things, the government and the RBI leverage Bonds within the Open Market Operations to regulate the current liquidity and stabilize borrowing and lending rates.

The maturity date refers to the date when the principal amount of an investment, such as a bond, note or other debt instrument becomes due and is repaid to the investor.

Bonds have become an ideal investment instrument for investors who do not want to put all of their eggs in one basket.

Investors utilise the capital they have saved over time to start their journey in the Indian financial market.

Bonds have become one of the most effective financial instruments to offer regular income to the holder without a massive risk of losing the principal amount.

Government securities are bonds issued by the government. The government issues these bonds to raise debt money from the general public. It raises this money to meet its various expenditure requirements. Often the revenues of the government are not enough to meet all its expenditure requirements.