korporatiivvõlakirjade

Korporatiivvõlakirjad, also known as corporate bonds, are debt securities issued by corporations to raise capital. When a corporation issues bonds, it is essentially borrowing money from investors. In return for lending their money, investors receive periodic interest payments (coupons) and the return of the principal amount on the bond's maturity date.

These bonds are a common tool for companies to finance various activities, such as expanding operations, acquiring other businesses, or refinancing existing debt. The terms of a corporate bond, including the interest rate, maturity date, and any specific covenants, are detailed in an indenture, which is a legal contract between the issuer and the bondholders.

The risk associated with corporate bonds varies depending on the financial health and creditworthiness of the issuing company. Bonds issued by financially strong companies with good credit ratings are considered less risky and typically offer lower interest rates. Conversely, bonds issued by companies with weaker financial standing or lower credit ratings are considered riskier and usually offer higher interest rates to compensate investors for the increased risk of default.

Investors can buy and sell corporate bonds in the secondary market, where their prices fluctuate based on factors such as prevailing interest rates, the issuer's credit rating, and overall market conditions. Corporate bonds play a significant role in the financial markets, providing a way for companies to access funding and for investors to earn income.