As the name implies, corporate bonds are issued by a corporation. Unlike municipal bonds, they are taxable. If you buy them in a retirement account, they may offer a relatively high rate of return on a tax-deferred basis.
Bonds are debt securities rated by independent agencies and, as you’d imagine, higher-rated bonds tend to yield less. Lower-rated bonds try to tempt investors with higher-yields because there’s a higher risk of default.
For a closer look at how Corporate Bonds may benefit your investment plan, check out:
Should You Invest In Corporate Bonds?
When building a diverse investment portfolio, many people consider buying corporate bonds. Before taking the plunge, consider your tolerance for risk and overall investment goals. This article can help you evaluate whether or not investing in corporates makes sense and understand the broader market factors that may impact your decision. If bonds are already part of your asset allocation plan, investing in corporate bonds could be a smart move. Take a moment to learn more about this investment opportunity.
What You Need to Know About Corporate Bonds
Whether you call them fixed-income or debt securities, corporate bonds are an investment that typically earns at a higher rate than municipal or treasury bonds. With those potential earnings, of course, there is a greater level of risk. If you’re adding corporate bonds to your investment portfolio, be sure to research the issuer’s credit rating and the overall corporate environment. Read this article to learn more about what you can do to make better informed investment decisions.