What are corporate bonds

What are corporate bonds?

Corporate bonds are fixed-income instruments issued by companies—both public and private—to raise capital for business-related activities like infrastructure development, expansion, or working capital needs. By purchasing a corporate bond, you are effectively lending money to the issuer.

Key features of corporate bonds

  • Issuer type: Public or private sector companies.
  • Interest payments: Investors earn fixed or variable interest at regular intervals.
  • Maturity date: The principal (initial investment) is repaid on a predefined maturity date.
  • Risk level: Varies by issuer credit rating—higher-rated bonds are typically lower-risk.

Corporate bonds offer an alternative to equity investments and can be a stable income source for conservative investors.

Accessing corporate bonds on FYERS

  • FYERS allows you to invest in corporate bonds via the primary market (during new bond issues).
  • You can also buy or sell corporate bonds in the secondary market from your FYERS trading account.

This dual access provides flexibility for both long-term investing and short-term trading strategies.

What if?

ScenarioExplanation
You want fixed returnsCorporate bonds provide regular interest income based on terms.
You need early liquidityYou can exit in the secondary market, though prices may vary.
You’re concerned about credit riskReview the issuer’s credit rating before investing.
You hold till maturityYou receive your original investment (principal) along with earned interest.
Always evaluate the bond’s credit rating, yield, and tenure before investing. FYERS provides these details during bond listing or order placement.

Last updated: 11 Jun 2025

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