Fixed income
Corporate bonds
Corporate bonds are typically issued by companies seeking to finance projects without giving up equity or ownership control. They come in various types and risk levels, from investment grade bonds with lower yields and reduced risk to high yield bonds, which offer higher returns but with increased credit risk.
The bond’s interest rate, known as the ‘coupon’ reflects the issuing company's creditworthiness. Investors in corporate bonds consider factors such as company financials, industry stability, and market conditions to assess risk and potential returns. Corporate bonds provide a structured investment option, with predictable income, and are a popular choice for income-focused portfolios.