Are you seeking medium-to-long-term investments with higher yields? Corporate Bonds are issued by companies that are seeking to raise funds to invest in their businesses. They are usually backed by the payment ability of the company based on future revenue; however physical assets and financial assets may also be used as collateral. Corporate bonds pay a higher rate of interest than government bonds.
If your financial objectives include gaining regular tax-deferred income throughout the year and you have a higher appetite for risk, then corporate bonds are the ideal investment solution for you.
How Do Corporate Bonds Work?
- When you invest in a corporate bond, you are lending money to a company for a fixed period of time
- In return, you receive an agreed rate of income
- Once the term has ended, you will receive your final coupon and principal payment.
- They are a medium-to long-term investment
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