Characteristics of corporate bonds:
1, corporate bonds are a kind of securities used to raise funds.
2. Corporate bonds are financial instruments for financing purposes.
3. Corporate bonds are negotiable securities and can be freely transferred and mortgaged.
4. Corporate bonds are securities with creditor's rights.
5. The repayment of corporate bonds depends on the profitability of the issuing company, so it has high risk and income potential.
What are the characteristics of corporate bonds?
1, there is a high risk: the repayment source of corporate bonds depends on the company's operating profit. However, the uncertainty of future operations makes investors holding corporate bonds face the risk of losing interest or even principal.
2. Providing a higher rate of return: According to the principle that risk is directly proportional to return, corporate bonds with higher risks need to provide their holders with a higher return on investment.
3. Have the option: Issuers and holders can give each other certain options to flexibly respond to different market conditions and demands.
4. No right to operate: corporate bonds reflect the creditor's rights relationship. The holder has no right to operate and manage the company, but has the right to claim the interests first and the right to claim compensation and distribute the remaining assets first.