List of Bonds Articles

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.

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.

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.

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

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 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.

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 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).

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.

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.

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

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.

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.

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.

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