List of Bonds Articles

Discover the key reasons to invest in short-term bonds in 2025. Learn about their benefits, such as lower risk, liquidity, and stable returns in an uncertain market

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.

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.

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.

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).

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 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.

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.

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

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

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.

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

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.

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.