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Financial Glossary
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 Corporate bond
Corporate bonds are issued by companies to raise capital. They are an alternative to issuing new shares on the stock market (equity finance) and are a form of debt finance.A bond is basically an IOU - a promise to pay back your original investment (the "principal") at a maturity date, plus interest payments (the "yield" or "coupon") at regular intervals between now and then. The bond is a tradeable instrument in its own right, which means that you can buy and sell it during its life, and its value will tend to rise and fall as interest rates change.For private investors, the safest way into corporate bonds is to invest in a corporate bond fund which spreads the money from lots of investors across lots of corporate bonds, thus diversifying the risk. As with all funds, you need to choose the one that matches your investment objectives and risk profile. Some bond funds aim for "high yield" (i.e. high income) but to get it they may have to invest in riskier companies. Other bond funds will aim for more modest income, and will only buy bonds of the most dependable blue-chip companies.When choosing a corporate bond fund, make you that you find out whether the fund manager"s charges are taken from the capital of the fund or from the income it generates. Charges taken from income will lessen the income returned to investors, but will allow the capital to grow, whilst charges taken from the fund"s capital will maintain quoted income levels but will reduce the capital.
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Glossary 
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Dictionary
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Corporate bond - Corporate bonds are issued by companies to raise capital. They are an alternative to issuing new shares on the stock market (equity finance) and are a form of debt finance.A bond is basically an IOU - a promise to pay back your original investment (the "principal") at a maturity date, plus interest payments (the "yield" or "coupon") at regular intervals between now and then. The bond is a tradeable instrument in its own right, which means that you can buy and sell it during its life, and its value will tend to rise and fall as interest rates change.For private investors, the safest way into corporate bonds is to invest in a corporate bond fund which spreads the money from lots of investors across lots of corporate bonds, thus diversifying the risk. As with all funds, you need to choose the one that matches your investment objectives and risk profile. Some bond funds aim for "high yield" (i.e. high income) but to get it they may have to invest in riskier companies. Other bond funds will aim for more modest income, and will only buy bonds of the most dependable blue-chip companies.When choosing a corporate bond fund, make you that you find out whether the fund manager"s charges are taken from the capital of the fund or from the income it generates. Charges taken from income will lessen the income returned to investors, but will allow the capital to grow, whilst charges taken from the fund"s capital will maintain quoted income levels but will reduce the capital.
Corporate bond : corporate bonds are issued by companies to raise capital. they are an alternative to issuing new shares on the stock market (equity finance) and are a form of debt finance.a bond is basically an iou - a promise to pay back your original investment (the "principal") at a maturity date, plus interest payments (the "yield" or "coupon") at regular intervals between now and then. the bond is a tradeable instrument in its own right, which means that you can buy and sell it during its life, and its value will tend to rise and fall as interest rates change.for private investors, the safest way into corporate bonds is to invest in a corporate bond fund which spreads the money from lots of investors across lots of corporate bonds, thus diversifying the risk. as with all funds, you need to choose the one that matches your investment objectives and risk profile. some bond funds aim for "high yield" (i.e. high income) but to get it they may have to invest in riskier companies. other bond funds will aim for more modest income, and will only buy bonds of the most dependable blue-chip companies.when choosing a corporate bond fund, make you that you find out whether the fund manager"s charges are taken from the capital of the fund or from the income it generates. charges taken from income will lessen the income returned to investors, but will allow the capital to grow, whilst charges taken from the fund"s capital will maintain quoted income levels but will reduce the capital.
