A corporate bond is a bond issued by a corporation. It is a
bond that a corporation issues to raise money in order to expand its business.
The term is usually applied to longer-term debt instruments, generally with a
maturity date falling at least a year after their issue date. (The term "commercial
paper" is sometimes used for instruments with a shorter maturity.)
Corporate bonds are often listed on major exchanges (bonds there are called "listed"
bonds) and ECNs like MarketAxess, and the coupon (i.e. interest payment) is
usually taxable. Sometimes this coupon can be zero with a high redemption value.
However, despite being listed on exchanges, the vast majority of trading volume
in corporate bonds in most developed markets takes place in decentralized,
dealer-based, over-the-counter markets.
Some corporate bonds have an embedded call option that allows the issuer to
redeem the debt before its maturity date. Other bonds, known as convertible
bonds, allow investors to convert the bond into equity.
No matter which coporate bond your want to place - we consult
you in the whole process.
For investors we do risk analysis on corporate bonds and we
offer corporate bonds issued by our clients.