What is a Corporate Bond?

Corporate bonds refer to the borrowing certificates issued by a joint stock company for additional capital within a certain period (such as 10 or 20 years). For the holder, it is only a certificate of providing a loan to the company, and it reflects only an ordinary debt and debt relationship. Although the holder does not have the right to participate in the management activities of the joint stock company, the company can collect fixed interest from the company every year according to the provisions of the parcel, and the order of interest collection must be prior to the dividends of shareholders. When the stock company is bankrupted and liquidated, the principal can also be recovered. Corporate bonds have a long maturity, generally more than 10 years. Once the bonds expire, the joint stock company must repay the principal and redeem the bonds. ^[1]

[gng s zhài quàn]

This entry lacks an overview map . Supplementing related content makes the entry more complete and can be upgraded quickly. Come on!

Corporate bonds refer to the borrowing certificates issued by a joint stock company for additional capital within a certain period (such as 10 or 20 years). For the holder, it is only a certificate of providing a loan to the company, and it reflects only an ordinary debt and debt relationship. Although the holder does not have the right to participate in the management activities of the joint stock company, the company can collect fixed interest from the company every year according to the provisions of the parcel, and the order of interest collection must be prior to the dividends of shareholders. When the stock company is bankrupted and liquidated, the principal can also be recovered. Corporate bonds have a long maturity, generally more than 10 years. Once the bonds expire, the joint stock company must repay the principal and redeem the bonds. ^[1]

The Commercial Press's "English-Chinese Securities Investment Dictionary" explains:

on

(1) The scope of guarantee includes the principal and interest of corporate bonds, liquidated damages, damages and the cost of realizing claims.

(2) Where a guarantee is provided in the form of a guarantee, it shall be a joint and several liability guarantee, and the guarantor shall have good asset quality.

(3) Where a property guarantee is established, the ownership of the secured property should be clear, no guarantee has been set up or preservation measures have been taken, and the value of the guaranteed property has been assessed by a qualified asset appraisal agency not less than the amount of the guarantee.

(1) The term of corporate bonds is more than 1 year;

(2) The actual issuance of corporate bonds is not less than RMB 50 million;

(3) Meet the statutory corporate bond issuance conditions.

(1) The company has major illegal acts;

(2) major changes in the company's situation no longer meet the conditions for listing of corporate bonds;

(3) The funds raised from corporate bonds are not used in accordance with the approved purposes;

(4) Failure to perform its obligations in accordance with the corporate bond raising measures;

(5) The company has suffered losses for the past 2 years.

1,

Can be divided according to whether it is registered

There are three ways to issue corporate bonds, namely

Article 16 of the Securities Law

According to the company law,

A bond fund is a securities investment fund that uses bonds as its investment object. It seeks a more stable income by concentrating the funds of many investors to make portfolio investments in bonds. With the development of the bond market, bond funds have also developed into an important category of securities investment funds, the size of which is second only to stock funds.

Characteristics of bond funds

1. Low risk, low return Because bond returns are stable and the risk is relatively small, compared with stock funds, bond funds have low risks but low returns.

2.Lower feesBecause bond investment management is not as complicated as stock investment management, the management fee of bond funds is also relatively low.

3. Stable returns Investing in bonds has regular interest returns, and promises to repay principal and interest when due, so the returns on bond funds are relatively stable.

4. Pay attention to current income Bond funds mainly pursue relatively constant income for the current period. Compared with stock funds, they lack the potential for appreciation. They are more suitable for investors who are unwilling to take too much risk and seek stable income for the period.