Corporate Bonds

In addi­tion to bank loans, compa­nies can also raise funds by issuing corpo­rate bonds. Corpo­rate Bonds, provide debt capi­tal via the capi­tal market. The features such as matu­rity, coupon and issue volume are explai­ned in the issue pros­pec­tus. In this context, indus­trial compa­nies often issue bonds to ensure or support the liqui­dity of the company. Parti­cu­lar atten­tion must be paid to the rating of the issuer; the credit­wort­hi­ness of the indi­vi­dual compa­nies influen­ces the inte­rest rate to be paid for the bond issued. Corpo­rate bonds with a first-class rating have a lower yield than those with a poor rating.