corporate bond
Noun
Meaning
a bond issued by a corporation; carries no claim to ownership and pays no dividends but payments to bondholders have priority over payments to stockholders
Source: WordNetSynonyms
Hypernyms
Examples
a corporate bond is a safer investment than common stock in the same company
Across the local corporate bond market, Von der Heyden Group Finance plc announced that it concluded the sale of the Cugó Gran Hotel which is located in Menorca, Spain.
And investors are increasingly using corporate bond ETFs to bet on an economic recovery and hedge against what could be a volatile post-election season.
As for exchange-traded fund (ETF) investors, the U.S. Fed’s move to step in to purchase corporate bonds to help keep the economy afloat, this can certainly help prop up corporate bond ETFs.
Among fixed-income securities, low duration funds saw an infusion of Rs 14,219 crore, liquid schemes (Rs 14,055 crore) corporate bond funds (Rs 11,910 crore) and banking and PSU funds (Rs 6,323 crore).
The Fed, for its part, has already created more than $3 trillion in “liquidity” just since February of this year, and appears willing to increase its balance sheet to $10 trillion to soothe corporate bond markets.