Wednesday, March 25, 2009

What are Corporate Bonds?

With interest rates approaching zero investors are looking around for alternative investments including Corporate Bonds....which begs the question, what are they?

Corporate Bonds are issued by companies to raise money. They are an IOU, with a promise to pay back the money at a set date plus regular interest payments.

They are tradeable, which means the price will vary...normally rising as interest rates fall and fall when interest rates rise.

Note: seek professional advice before making any investment decision

Posted by Sean Wilson, Independent Financial Adviser, Swindon, Wiltshire.