Corporate bond

How it is used

Companies issue corporate bonds to fund investment or refinance debt. Investors look at the credit rating and the extra yield over government bonds, called the spread. Bonds are described as investment grade or high yield. In Turkey, short-term company debt is often issued as 'finansman bonosu'.

Example sentences

1. The holding company sold 300 million dollars of corporate bonds to international investors.

2. Corporate bond spreads widened as fears of a recession grew.

Common collocations

• issue a corporate bond
• corporate bond market
• corporate bond spread
• investment-grade corporate bond

Related terms

• bondA loan that an investor gives to a government or company. The issuer usually pays regular interest and returns the original amount on a fixed date.
• credit ratingA grade given by an agency such as S&P, Moody's or Fitch that shows how likely a government or company is to pay its debts on time.
• defaultA failure by a borrower, such as a company or government, to make interest or principal payments on its debt on time, or to keep other terms of the loan.
• government bondA bond issued by a national government to borrow money, paying interest and returning the principal at maturity. It is often seen as one of the safest investments in its own currency.
• yieldThe income an investment produces, shown as a yearly percentage of its price. For bonds, it is the return an investor gets if the bond is bought at today's price.

More terms: Bonds & Fixed Income

• coupon
• maturity
• fixed income