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?
| Scenario | Explanation |
|---|
| You want fixed returns | Corporate bonds provide regular interest income based on terms. |
| You need early liquidity | You can exit in the secondary market, though prices may vary. |
| You’re concerned about credit risk | Review the issuer’s credit rating before investing. |
| You hold till maturity | You 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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