List of Bonds Articles

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.

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.

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

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.

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.

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.

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.

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.

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.

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 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.

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.

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

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.