Best Corporate Bonds Investment Platform in India
06/07/2023 Financial & Legal Services
Price: Check with seller
Description
A Corporate Bond is issued by a company to help it raise capital from the market. An investor who buys the corporate bond is lending capital to the Company and in return earns Interest Payments based on a predetermined schedule.
Companies at times prefer raising funds through debt financing methods such as bonds because this is cheaper than raising money through equity investments and does not involve dilution of ownership of the company.
For an Investor, investing in a corporate bond helps generate regular cashflows at a predefined frequency (agreed through a repayment schedule).
The Company that is raising capital via Corporate Bond is referred to as the Issuer of the Bond or theBorrower. The Investor who is lending capital is referred to as the Subscriber of the Bond.
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